Aramco Creates Gas Division, Eyes Potential IPO
Saudi Aramco is reorganizing its business to create a new gas division, a move that could unlock more value and potentially attract new investment or lead to an initial public offering. The oil giant has hired Evercore to advise on the restructuring, which would allow it to develop its natural gas resources domestically and build a liquefied natural gas portfolio abroad.
The decision is in line with the existing strategy among Gulf state oil companies of offering outside investors parts of their businesses while retaining operational control. Aramco has been seeking outside capital to fund the kingdom's ambitious diversification agenda amid mounting fiscal pressure.
The new gas division could be valued at over $100 billion, making it a significant opportunity for potential investors. Aramco has also been actively seeking to sell assets, improve efficiency, and cut costs in recent years.