MOL Group has agreed to acquire BG Cyprus Ltd., a Shell plc subsidiary, for $720 million.

BG Cyprus holds a 35% non-operated interest in Cyprus Offshore Block 12, which contains Aphrodite natural gas field in the eastern Mediterranean about 170 km southeast of Cyprus.

Discovered in 2011 and appraised through subsequent drilling campaigns, Aphrodite is a deepwater gas development project estimated to contain about 104 bcm (632 MMboe) of contingent gas resources and 8 million bbl of condensate. The field is operated by Chevron.

The development plan includes four production wells, a floating production unit, and a 250-km subsea pipeline connecting the field to Egypt's gas transmission network. Gas production is expected to be sold to Egyptian Natural Gas Holding Co. (EGAS). Final investment decision is targeted for 2027, with first gas expected in 2031.

"Whilst in Central Europe we are working hard to maintain and develop the security of supply, in the southern part of Europe we are embarking on one of the most significant exploration and production projects in our history," said Zsolt Hernádi, MOL Group chairman and chief executive officer.

Hernádi said that amid geopolitical uncertainty, diversification through high-quality assets and established international partners is essential to maintaining resilience and competitiveness, adding that the transaction strengthens both MOL and the broader Central and Eastern European region.

The acquisition marks MOL's entry into Cyprus and expands its upstream presence within the European Union. 

The Aphrodite joint venture consists of operator Chevron Cyprus Ltd. (35%), BG Cyprus Ltd. (35%), and NewMed Energy (30%).

Upon closing, expected in early 2027 subject to regulatory approvals and customary conditions, MOL will assume Shell's rights and obligations associated with the 35% interest.