MOL Group Acquires Cyprus Gas Field Stake from Shell

MOL Group has entered a significant new phase in its oil and gas exploration and production segment with the acquisition of BG Cyprus from Shell. This deal marks the company's largest growth opportunity in this sector since 2019, when it acquired a stake in Azerbaijan's ACG field.

The acquisition grants MOL a 35% non-operating stake in Cyprus's offshore Block 12, which hosts the Aphrodite gas field. Discovered in 2011 and confirmed by subsequent drilling, the field is estimated to hold approximately 104 billion cubic meters of conditional gas resources, equivalent to 632 million barrels of oil. This strategic move positions MOL within a European Union development project, offering a significantly lower risk profile.

MOL will join established international partners Chevron, holding a 35% stake, and Israel's NewMed Energy with a 30% share. Both partners bring extensive experience in deepwater projects in the Eastern Mediterranean. The development plan includes drilling four wells and installing a standalone floating production facility. A final investment decision is anticipated in 2027, with gas production expected to commence in 2031.

The project involves constructing a 250-kilometer subsea gas pipeline to connect the field with Egypt's gas transmission network. MOL Group's Chairman and CEO, Zsolt Hernádi, emphasized the company's continuous drive, stating, "While we are intensively working on preserving and improving supply security in Central Europe, in Southern Europe we are embarking on one of the most significant exploration and production projects in our company's history." The total transaction value for MOL Group is estimated to be up to $720 million, subject to potential adjustments.

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While we are intensively working on preserving and improving supply security in Central Europe, in Southern Europe we are embarking on one of the most significant exploration and production projects in our company's history.