Aramco Creates New Gas Division Amid Saudi Drive for Reduced Oil Reliance

Saudi oil giant Aramco is reorganizing its business to create a new gas division, as part of an existing strategy at Gulf state oil companies to offer outside investors pieces of their businesses while retaining operational control.

The move will allow Aramco to use a focused platform from which to develop its natural gas resources domestically and build a liquefied natural gas (LNG) portfolio abroad.

Aramco has been seeking outside capital in its efforts to support the kingdom's drive to reduce its reliance on oil, following the US-Israeli war on Iran that disrupted its main export routes.

The new gas business will stand alongside upstream and downstream divisions, with each unit having its own president. The company is also exploring other ways to raise cash, including lease-and-leaseback agreements.