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Saudi Aramco to replace chairman in a push to get IPO moving

Key Points
  • Saudi Aramco Chairman Khalid al Falih will be replaced as chairman of the oil giant.
  • The move comes as the company seeks to move ahead with its initial public offering.
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Saudi Arabia names head of PIF as new Aramco chairman

Saudi oil giant Aramco will be getting a new chairman to replace Energy Minister Khalid al Falih as the company moves ahead with its plans to go public.

Falih had been spearheading the move towards an initial public offering but lately had been blamed for a slowing in the Saudi Arabian company's movements towards diversification.

Falih will be replaced by Yasser Othman Al-Rumayyan, governor of the Public Investment Fund, according to a tweet from Falih's verified account. Falih congratulated Al-Rumayyan on the appointment, saying he was "wishing him every success," according to a Google translation.

The news comes just days after the Saudi government created a new ministry for industry and mineral resources, breaking it away from energy in a move seen as reducing Falih's influence. However, he will remain the head of the energy ministry.

The Wall Street Journal had reported that officials believe separating the duties will help accelerate the process to get the Aramco IPO moving ahead.

A Saudi Aramco spokesman said the company would "respond at the earliest opportunity" to a CNBC request for comment.