Giant deal at Aphrodite: Shell sells its share for 720 million dollars

A significant change in the regional energy map: the company NewMed Energy reported today (Friday) that the international energy giant Shell has signed an agreement to sell all of its rights in the 'Aphrodite' natural gas reservoir in Cyprus. The rights, which constitute 35% of the reservoir, will be sold to the MOL Group for a sum that could reach up to 720 million dollars. This deal reflects an impressive valuation of over two billion dollars for the reservoir, which is still in the pre-development stages.

The Aphrodite reservoir is located in Block 12, about 170 kilometers from Limassol, Cyprus, and is estimated to contain about 100 BCM, which is 3.53 TCF of natural gas. The other partners in the reservoir are the company Chevron, which holds 35 percent and also serves as the operator, and the company NewMed Energy, which holds the remaining 30 percent.

The gas to be produced from Aphrodite is intended for a clear purpose: in accordance with a memorandum of understanding signed between the partners in Aphrodite, the Cyprus National Gas Company, and the Egyptian Natural Gas Holding Company, the entire quantity of gas will be sold to the Egyptian company EGAS. In the coming weeks, the completion of all signatures on the hosting agreement is expected, which will pave the way for the next stage. As part of this agreement, the partners will build an underwater pipeline that will connect the Aphrodite reservoir directly to the Egyptian transmission system, and the parties continue to conduct negotiations towards the signing of a binding agreement.

At the same time, the partners in the Aphrodite reservoir continue to work vigorously to advance a final investment decision, which is expected to be reached in the middle of 2027.