Saudi Aramco considers a gas spinoff
The plans are a sign of the pressure the company faces to raise cash for the government and draw foreign investment into the kingdom.
Saudi Aramco is exploring the idea of spinning off its gas business into a separate division and potentially listing a portion of it, signaling the company's need for additional funds to support the government and attract foreign investment to the kingdom, according to Reuters. The state-owned oil giant is in the process of establishing a new business segment dedicated to gas, joining its existing upstream and downstream operations, as reported by the news agency.
In line with its strategy to raise up to $35 billion by monetizing other assets, Bloomberg previously revealed. The company has also contemplated spinning off its trading unit, insurance arm, and airline in the past. Currently, Aramco is investing $100 billion in the development of the Jafurah field, aiming to increase its gas production by over 80% by 2030.
Moreover, the firm is seeking to acquire stakes in gas assets located abroad. Gas has emerged as a critical area of focus for energy companies in the Gulf region, as they anticipate that the demand for the fuel will persist for decades beyond the peak of oil sales.
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