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Shell is leaving Cyprus’ Aphrodite gas field in a deal worth as much as $720 million, handing its share to Hungary’s MOL Group before the long-delayed project receives its final investment approval.
The sale may sound like a major payday for Cyprus, but the money will go to Shell in exchange for its ownership of BG Cyprus Ltd., the company that holds a 35% stake in the offshore field.
In simple terms, one investor is stepping out and another is taking its seat at the table. The gas remains where it is, the Republic retains its rights over the field, and the project’s other partners remain involved.
Aphrodite lies in Block 12 of Cyprus’ exclusive economic zone, about 170 kilometers southeast of the island. It was Cyprus’ first offshore gas discovery, but more than a decade later, commercial production has yet to begin.
Shell said the sale reflects its decision to put its money into projects that fit more closely with its global liquefied natural gas business. The company maintains that Aphrodite remains commercially attractive and could help meet the region’s energy needs.
MOL will take over Shell’s rights and responsibilities in the project once the deal is completed. The transaction is expected to close in early 2027, provided regulators approve it and all other conditions are met.
Chevron Cyprus will remain the field’s operator with a 35% stake, while Israel’s NewMed Energy holds the remaining 30%.
The project took an important step forward in 2025, when the Cyprus government and the three partners agreed on a development plan. It includes a floating production unit at sea, with the gas expected to be sent to Egypt and sold to the state-owned Egyptian Natural Gas Holding Company, known as EGAS.
However, the companies have not yet made a final investment decision, the point at which they formally commit the billions needed to build the infrastructure and begin development.
That means the sale should not be confused with the start of production. No date has been announced for gas to begin flowing, and Cyprus will not start receiving revenue simply because the ownership has changed.
For the average Cypriot, the immediate effect is therefore limited. The deal will not lower electricity bills, bring gas to homes or put hundreds of millions into state coffers.
Its importance lies in what comes next.
If MOL is prepared to invest and the remaining partners finally approve development, the ownership change could help move Aphrodite closer to production. If the final decision continues to be delayed, the field will remain another valuable Cyprus resource waiting beneath the Mediterranean.
Shell, which inherited the stake after buying BG Group in 2016, is choosing to collect the value of its investment now rather than wait for the project’s next phase.
Cyprus, meanwhile, is still waiting for the milestone that matters most: not another agreement or change of shareholder, but the day Aphrodite’s gas finally leaves the seabed.
*Source: REuters, Shell
