Saudi Aramco plans reorganisation to create gas division, sources say

Saudi oil giant Aramco plans to reorganise its business to create a new gas division with an eye on possible listings of business units in the future to raise capital, two sources with knowledge of the matter told Reuters.

The move is in line with an existing strategy at Gulf state oil companies of offering outside investors pieces of their businesses while retaining operational control and largely avoiding opening up their main oil-producing divisions.

Such deals have included the United Arab Emirates' state oil company ADNOC listing stakes in gas, drilling and retail fuel businesses. Aramco is publicly listed but also has listed subsidiaries such as petrochemicals giant SABIC. Both ADNOC and Aramco have also raised billions of dollars from infrastructure assets such as oil and gas pipelines.


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Aramco declined to comment.

The new gas business would 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, long the engine of the economy in the world's largest crude exporter before the US-Israeli war on Iran disrupted its main export routes, has been seeking outside capital in its efforts to support the kingdom's drive to reduce its reliance on oil.