Saudi Arabia is working to restore half of its 1,200-kilometer East-West pipeline capacity within days, as reported by Reuters. The pipeline was damaged by Yemen-based Houthi forces last week, but the company is reportedly working to bypass the damaged section and restore operations. Full repairs are expected to take around six weeks, though the risk of further disruptions remains. Meanwhile, Saudi Arabia is offering crude to Asian refiners through ship-to-ship transfers from Oman's Sohar port, helping offset disruptions at its Red Sea port of Yanbu.
Saudi Aramco is planning a comprehensive corporate reorganisation that would establish a dedicated gas division, as reported by Reuters. This strategic move aims to create a separate platform for expanding the company's natural gas business while potentially attracting outside investment into specific operational segments. The proposed structure would bring Aramco's gas activities under a more focused business model, allowing the company to pursue domestic gas development while building its liquefied natural gas (LNG) portfolio internationally.
Oil prices fell sharply on Wednesday after Saudi Arabia reportedly offered more crude through Oman, easing fears that damage to its key East-West pipeline could further restrict global supplies. Brent crude futures for November deliveries fell about 3.1% to $105.36 per barrel, while West Texas Intermediate (WTI) contracts expiring in October dropped nearly 3.3% to $102.3 per barrel. The United States Oil Fund (USO), which tracks WTI, was down 3.1%, while the ProShares UltraShort Bloomberg Crude Oil (SCO) rose 2.2%. According to the U.S. Energy Information Administration (EIA), U.S. crude inventories fell by 600,000 barrels to 423.4 million barrels for the week ending September 11.
The restructuring initiative comes as Aramco seeks new ways to raise capital without relinquishing operational control of its core oil-producing business. According to Reuters, the company is already publicly listed and has previously employed asset transactions to bring in external investors. A dedicated gas business could provide another avenue for such deals, including possible future listings of individual business units, as sources indicated to the news agency.
The strategy reflects a broader approach among Gulf energy companies, which have increasingly monetised selected assets while retaining control over their main operations. As reported by Reuters, Abu Dhabi's ADNOC has listed stakes in businesses spanning gas, drilling and fuel retail, while both ADNOC and Aramco have raised billions through infrastructure assets such as pipelines. This trend demonstrates the regional industry's focus on strategic asset monetisation while maintaining operational control.
For Aramco, the gas expansion is linked to Saudi Arabia's broader effort to diversify its economy and reduce dependence on crude oil revenues. According to Reuters, developing natural gas resources and expanding into LNG could create additional growth avenues beyond the company's traditional oil business. The gas division would serve dual purposes: creating a dedicated platform for gas and LNG growth while potentially making selected assets easier to monetise in the future.
