Saudi Aramco Taps Evercore for Standalone Gas Division
Saudi Aramco is embarking on a major restructuring effort, hiring Evercore to advise on creating a standalone gas division. This move aims to unlock more value and potentially attract new investment or lead to an initial public offering (IPO) of the unit, valuing it at over $100 billion.
The decision comes as part of Saudi Aramco's broader strategy to reorganize its business and create a focused platform for developing domestic natural gas resources and building a liquefied natural gas (LNG) portfolio abroad.
Boston Consulting Group has also been advising Aramco on this effort, dubbed Project Gamma. This move aligns with the existing approach among Gulf state oil companies to offer outside investors parts of their businesses while retaining operational control.
Saudi Aramco is seeking outside capital to fund the kingdom's ambitious diversification agenda amid mounting fiscal pressure. The company has been actively looking to sell assets, improve efficiency, and cut costs.