Saudi Aramco is working with Evercore on gas unit plans, Bloomberg News reports

• The standalone gas unit could lead to an IPO or minority listing valued at more than $100 billion
• The restructuring follows a Gulf state oil company trend of offering outside investors partial stakes while retaining operational control and avoiding opening main oil-producing divisions
• Aramco has been actively selling assets, improving efficiency, and cutting costs to fund Saudi Arabia's ambitious diversification agenda amid mounting fiscal pressure

Summary

Saudi Aramco has engaged Evercore as an advisor for a restructuring initiative to establish a standalone gas division, with potential plans for a future initial public offering, Bloomberg News reported on September 26. Boston Consulting Group (BCG) has also advised on the effort, internally referred to as "Project Gamma," aimed at unlocking greater shareholder value.

The restructuring could attract new investment into the gas unit and potentially lead to an IPO or minority stake listing, with the business valued at over $100 billion. The new division would provide Aramco with a dedicated platform to develop domestic natural gas resources and expand its liquefied natural gas (LNG) portfolio internationally.

This strategic move aligns with broader trends among Gulf state oil companies, which have increasingly offered minority stakes in business units to outside investors while maintaining operational control and keeping core oil production divisions private.

The initiative comes as Aramco, the world's largest energy company, faces mounting pressure to generate funds for Saudi Arabia's economic diversification agenda. The oil giant has been actively pursuing asset sales, efficiency improvements, and cost reductions to support the kingdom's fiscal requirements.

Neither Saudi Aramco, Evercore, nor BCG immediately responded to Reuters' requests for comment outside business hours.

The restructuring represents a significant strategic shift for Aramco as it seeks to capitalize on its gas assets separately from its traditional oil operations, potentially creating new revenue streams and attracting specialized investment in the growing global gas market.