The Mol Group has signed an agreement with Shell to acquire a 100 percent ownership stake in BG Cyprus Ltd., the company announced on Friday on the BSE website.
According to the notice, the purchase price payable is up to 720 million dollars.
BG Cyprus Ltd. holds a 35 percent stake in Cyprus’s offshore Block 12, which encompasses the Aphrodite gas field development project located in the Eastern Mediterranean region.
Through the transaction, Mol is entering a low-risk field development project within the European Union, which represents the largest growth opportunity for its exploration and production business since it acquired a 9.57 percent stake in the Azerbaijani ACG field in 2019, the company wrote.
The Aphrodite gas field, discovered in 2011, has estimated reserves of approximately 104 billion cubic metres of natural gas (632 million barrels of oil equivalent) and 8 million barrels of condensate. In the project, operator Chevron holds a 35 percent stake and Israeli company NewMed holds a 30 percent stake.
The development plan includes the drilling of four wells, the installation of a floating production unit, and the construction of an approximately 250-kilometre subsea pipeline connecting the field to the Egyptian gas transmission network. The final investment decision is expected to be made in 2027, with gas production planned to begin in 2031.
Zsolt Hernádi, President and CEO of the Mol Group, emphasized in the statement that the transaction is in line with the company’s exploration and production strategy, which focuses on strengthening the international portfolio and establishing strategic partnerships with recognized international companies. “The offshore gas development project supports the company’s long-term production goals and contributes to the expansion of the production portfolio,” he added.
The closing of the transaction is expected to take place in the first half of 2027, following the receipt of the necessary regulatory approvals and the fulfilment of the closing conditions.
The price of Mol shares rose by 12 forints, or 0.27 percent, to 4,500 forints on Thursday, reaching an all-time high. The lowest price recorded over the past 12 months was 2,642 forints.
Artificial intelligence was used for the translation of parts of the original Hungarian text.
