Shell plc (NYSE: SHEL) is trimming its portfolio again. On Friday, the energy giant announced it has agreed to sell its wholly owned subsidiary, BG Cyprus Ltd., to MOL Group for up to $720 million. The price tag includes customary adjustments and some milestone-based contingent payments, so the final number could move around a bit.

Shell Exits Aphrodite Gas Project

BG Cyprus holds a 35% non-operated stake in Cyprus Offshore Block 12, which contains the Aphrodite natural gas field in the eastern Mediterranean. The project is expected to sell its gas production to the Egyptian Natural Gas Holding Company, so it's not just about extracting gas; it's about where that gas goes.

Shell said it worked with the Cyprus government and its joint venture partners to advance the Aphrodite project. The sale lets Shell realize the value it helped create, while the remaining partners keep pushing toward a final investment decision.

"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 also noted that Egypt remains a key market where it continues to have a significant presence. The transaction is expected to close in early 2027, pending regulatory approvals and the usual closing conditions.

Aphrodite Project Ownership

The Aphrodite gas field sits about 170 kilometers southeast of Cyprus in the country's exclusive economic zone. Chevron Cyprus operates the project with a 35% interest. Shell, through BG Cyprus, owns a 35% non-operating stake, and NewMed Energy holds the remaining 30%. Once the deal closes, MOL Group will step into Shell's shoes, taking over its rights and obligations related to the asset.

BG Group originally acquired the Aphrodite interest back in 2015. It became part of Shell when Shell bought BG Group in February 2016. So this sale is part of a longer story of Shell integrating and then divesting assets it picked up along the way.

In 2025, the Cyprus government and the Aphrodite partners approved a development and production plan that includes a floating production unit. But the partners haven't yet made a final investment decision, so the project is still in the planning stages.

Unveils $3 Billion Stock Buyback

The announcement comes a day after Shell reported mixed second-quarter fiscal 2026 results and unveiled a new $3 billion share buyback program. The company beat Wall Street's earnings estimates but missed on revenue. It also said it expects to complete up to $4.23 billion in share repurchases by Oct. 23, 2026, including the remaining authorization from a previously suspended buyback program.

Shell Price Action

Shell shares were up 0.82% at $91.25 at the time of publication on Friday, according to market data.