Saudi Aramco has hired Evercore to advise on splitting off its gas business into a standalone unit, Bloomberg reported, citing people familiar with the matter. The new division could carry a valuation above $100 billion and eventually list through an IPO or minority stake sale.
Saudi Aramco has hired Evercore to advise on a restructuring that could create a standalone gas division, Bloomberg News reported on Saturday, citing people familiar with the matter. The move could pave the way for a future listing of the business.
A possible $100 billion valuation
The gas unit could attract new investment or eventually be offered in an initial public offering or minority stake sale at a valuation of more than $100 billion, according to the report. The plans remain under discussion and could still change.
Boston Consulting Group has also advised Aramco on the restructuring, dubbed Project Gamma, recommending the separation to unlock value.
Jafurah expansion drives the push
The restructuring comes as Aramco seeks to expand its natural gas business, with investment of more than $100 billion planned for the Jafurah field and other projects. The company expects gas production to rise about 80% through 2030 and targets up to $15 billion in additional operating cash flow from the business by then.
Aramco is also exploring asset sales of up to $35 billion to raise funds for state projects and dividends, Bloomberg reported.
Source: Investing.com
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