(WO) — MOL Group has agreed to acquire Shell's 35% non-operated interest in the Aphrodite natural gas field offshore Cyprus for up to $720 million, expanding its international upstream portfolio with a major deepwater gas development in the Eastern Mediterranean.

The transaction includes Shell's wholly owned subsidiary BG Cyprus Ltd., which holds the 35% interest in Cyprus Offshore Block 12. The purchase price is subject to customary closing adjustments and milestone-linked contingent payments, with the transaction expected to close in early 2027 pending regulatory approvals.

Discovered in 2011, Aphrodite is estimated to contain approximately 104 Bcm (632 MMboe) of contingent natural gas resources and 8 MMbbl of condensate. Following completion of the transaction, MOL will join Chevron, the project's operator with a 35% interest, and NewMed Energy, which holds the remaining 30%.

The development plan, approved by the Cypriot government in 2025, includes four production wells, a standalone floating production unit (FPU) and a 250-km subsea pipeline that will transport produced gas to Egypt for sale to the Egyptian Natural Gas Holding Company (EGAS). A final investment decision is targeted for 2027, with first gas expected in 2031.

MOL Chairman and CEO Zsolt Hernádi said the acquisition represents the company's largest exploration and production growth opportunity since acquiring a stake in Azerbaijan's Azeri-Chirag-Gunashli (ACG) field in 2019 and supports its strategy of expanding its international upstream portfolio.

For Shell, the divestment is part of its ongoing portfolio optimization. "We believe Aphrodite remains an attractive development opportunity and will play an important role in supporting regional energy needs," said Cederic Cremers, Shell's Integrated Gas President. "Our decision to exit is driven by disciplined capital allocation and portfolio choices, as we focus on opportunities that strengthen our integrated LNG value chain."

Shell acquired the Aphrodite interest through its purchase of BG Group in 2016. Upon completion of the transaction, MOL will assume Shell's rights and obligations associated with the offshore license.