Shell has agreed to sell its 35 per cent stake in the Aphrodite offshore gas field in Cyprus to Hungary’s MOL Group in a deal worth up to $720 million, as part of its strategy to streamline its portfolio and focus on core liquefied natural gas (LNG) assets.

The transaction, which is subject to regulatory approvals and other closing conditions, is expected to be completed in early 2027.

The Aphrodite field, located in Cyprus’ Block 12 and operated by Chevron, is estimated to hold about 3.7 trillion cubic feet of natural gas and around eight million barrels of condensate. Chevron will retain its 35 per cent stake, while NewMed Energy holds the remaining 30 per cent interest.

The field development plan, approved by the Cypriot government last year, includes four subsea wells connected to a floating production unit. Gas will be transported through a new 250-kilometre pipeline to Egypt for processing and sale, while condensate will be exported by shuttle tankers.

Front-end engineering and design work is currently underway, with a final investment decision expected in 2027 and first gas targeted for 2031.

Shell said the sale reflects its disciplined capital allocation strategy and continued focus on opportunities that strengthen its integrated LNG business. The company added that it remains confident the Aphrodite project will play an important role in meeting regional energy demand.

MOL described the acquisition as one of its most significant upstream investments in recent years, saying it strengthens the company’s international exploration and production portfolio and provides exposure to a major gas development within the European Union.