Eni and PETRONAS Announce Strategic Joint Venture to Develop Upstream Assets in Malaysia and Indonesia

Eni and PETRONAS Announce Strategic Joint Venture to Develop Upstream Assets in Malaysia and Indonesia

(IN BRIEF) Eni and PETRONAS have entered into an exclusive Memorandum of Understanding to establish a joint venture holding company focused on selected upstream assets in Malaysia and Indonesia. The partnership aims to drive growth in the region, targeting a medium-term production goal of 500 kboepd, while focusing on new gas development and contributing to the energy transition.

(PRESS RELEASE) MILAN, 27-Feb-2025 — /EuropaWire/ — Eni S.p.A. (BIT: ENI) and PETRONAS have signed an exclusive Memorandum of Understanding (MoU) to initiate detailed discussions on creating a joint venture holding company that will oversee select upstream assets in Indonesia and Malaysia. This partnership represents a significant step toward expanding both companies’ operations and driving growth in the Southeast Asian energy sector.

The collaboration is expected to generate substantial synergies, positioning the joint venture as a prominent player in the regional LNG market. With an initial production target of 500 kboepd in the medium term, the joint venture will combine around 3 billion barrels of oil equivalent (boe) in reserves, complemented by an additional 10 billion boe in potential exploration upside. This creates a robust foundation for future growth, both in production and exploration.

The primary focus of the joint venture will be on gas development, reflecting the companies’ commitment to supporting the energy transition while meeting the growing domestic gas demand in the region. A comprehensive business plan will be put in place, targeting opportunities in exploration, development, and potential portfolio expansion.

The assets under the joint venture will retain their current operational framework, ensuring a continued emphasis on health, safety, and environmental standards (HSE), as well as project efficiency and delivery. Both Eni and PETRONAS will uphold their sustainability commitments as they move forward with this strategic venture. Furthermore, the new entity will benefit from the combined financial strength and technical expertise of both companies, with plans to raise external financing independently.

The partnership’s goals include maintaining stable production in Malaysia while advancing new developments in Indonesia, aligning with both companies’ long-term regional strategies.

Both Eni and PETRONAS have informed the relevant authorities in Indonesia and Malaysia of their intentions to move forward with the joint venture. Any final transaction is contingent upon the necessary governmental, regulatory, and partner approvals.

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SOURCE: Eni S.p.A.