Saudi Aramco Plans to Spin Off Its Gas Business

Saudi Aramco is planning a business reorganization and the creation of a separate gas division. The company is also considering a future stock exchange listing for this business.

After the change, Aramco will have three main divisions. A separate gas business will be added to oil extraction and processing. Each division will have its own head. Under the new structure, the company will work on natural gas projects in Saudi Arabia and expand its liquefied natural gas business in other countries as well.

A significant part of the plan is the Jafurah field, which began operations last year. The project envisions replacing part of the oil used in power generation with natural gas, which will allow the country to export more oil.

Aramco is also considering other ways to raise additional funds. One option is listing a small stake of the gas business on the stock exchange. Last year, the company received $11 billion from a deal related to Jafurah's gas processing infrastructure.

Source: Reuters