British oil and gas company Shell has reached an agreement with Hungary’s MOL Group to sell its subsidiary BG Cyprus. The deal could be worth up to $720 million, including standard adjustments and additional payments tied to the achievement of certain milestones.

BG Cyprus holds a 35% stake in Block 12 off the coast of Cyprus, where Chevron is the operator. This block contains the undeveloped Aphrodite gas field, which holds reserves of several trillion cubic feet.

Last year, the Cypriot government and project partners approved a development and production plan for the field, which includes the use of a floating production facility. Currently, engineering and design work is underway to develop 3.5 trillion cubic feet of gas. Four contractors—Seatrium, Hanwha Ocean, HD Hyundai Heavy Industries, and Samsung Heavy Industries—are competing for the $4 billion contract to build the floating facility.

NewMed Energy, a partner in Block 12, previously announced that a final investment decision on the Aphrodite project is expected in 2027. All gas produced is expected to be sold to the Egyptian state gas company (EGAS). Production at the Aphrodite field is scheduled to begin in 2031.

Shell confirmed the upcoming deal, noting that it has worked with the Nicosia administration and project partners to advance the project to its current stage. The sale of the stake to MOL will allow Shell to realize the value it has created, while the remaining partners will continue working toward project approval.

The Aphrodite joint venture is operated by Chevron, which holds a 35% stake. Shell also has 35%, and NewMed holds 30%. The transaction is expected to close in early 2027, pending all necessary approvals and completion of closing conditions. After the deal is finalized, MOL will assume Shell’s rights and obligations related to this stake.