Saudi Aramco is working with Evercore on gas unit plans, reportedly
EVR•Saudi Aramco hired Evercore to advise on a restructuring that could create a standalone gas division and open the door to a future listing. A potential minority listing could value the business at more than $100 billion, reportedly.
1. Gas division plans
Saudi Aramco hired Evercore to advise on a restructuring that would create a standalone gas division and could open the door to a future listing, reportedly. Boston Consulting Group also advised Aramco to split off its gas operations in an effort called Project Gamma.
2. Potential investment
The restructuring could bring new investment into the gas unit or lead to an initial public offering or minority listing valuing the business at more than $100 billion, reportedly. Aramco plans to use a focused platform to develop natural gas resources domestically and build a liquefied natural gas portfolio abroad.
3. Seeking outside capital
Aramco has been seeking outside capital to fund Saudi Arabia’s diversification agenda and has been seeking to sell assets, improve efficiency and cut costs. Gulf state oil companies have offered investors parts of their businesses while retaining operational control and largely avoiding opening their main oil-producing divisions.
