* Deal for up to $720 million

* Aphrodite gas field operated by Chevron ( CVX ), Shell, NewMed

non-operating partners

* Deal part of Shell's efforts to expand LNG portfolio

(Adds details and context in paragraph 4-6)

July 31 (Reuters) - Shell said on Friday it had

agreed to sell its BG Cyprus unit to Hungarian oil and gas firm

MOL Group for up to $720 million, as the British oil

major sharpens its focus on LNG operations.

BG Cyprus' 35% non-operated interest in a Cyprus Offshore

block, home to the Aphrodite gas field in the eastern

Mediterranean, will be controlled by MOL upon the expected 2027

completion of the deal.

"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's

Integrated Gas President Cederic Cremers said in a statement.

Shell has been seeking to expand its LNG portfolio to capitalise

on rising global demand for the fuel and on Thursday said it

will take a final investment decision on its Canada LNG project

phase 2 by end of 2026.

The Aphrodite gas field, located in an exclusive economic

zone off the Cyprus coast, is operated by Chevron's ( CVX )

Cyprus unit with a 35% stake, while BG Cyprus and Israel's

NewMed Energy hold 35% and 30% non-operating

interests, respectively.

BG Group, which was bought out by Shell in 2016, had

acquired the Aphrodite interest in 2015 through its Cyprus unit.