KUALA LUMPUR — Italian energy giant Eni and Malaysia’s state-owned Petronas have signed a binding agreement to establish a jointly owned company that will combine their upstream oil and gas assets in Malaysia and Indonesia, in a deal valued at more than $15 billion (RM66 billion) over the next five years.
The new entity — referred to as NewCo — will oversee 19 assets, including 14 in Indonesia and five in Malaysia.
The joint venture is expected to start with a production base exceeding 300,000 barrels of oil equivalent per day (boe/d), with plans to increase output to over 500,000 boe/d in the medium term.
Signed at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), the agreement marks a major step in both companies’ efforts to consolidate operations and accelerate regional energy growth.
Eni said the company will manage around 3 billion barrels of discovered reserves, with the potential to explore up to 10 billion more, operating as a “financially self-sufficient entity.”
The move aligns with Eni’s “satellite” strategy, which involves creating spin-offs centred on specific business areas — a model previously used in its Azule Energy partnership with BP in Angola.
Petronas president and group chief executive officer Tan Sri Tengku Muhammad Taufik described the venture as a “historic partnership” that would set “a new benchmark for more efficient, cost-effective and responsible upstream development.”
“Adopting this innovative and proven business model reinforces Petronas’ firm commitment to support national and regional energy aspirations,” he said, adding that it would help deliver “greater and more sustainable value” to customers, host nations and stakeholders.
The joint venture will consolidate high-impact upstream assets across key hydrocarbon basins in both countries, leveraging the companies’ combined technical expertise and regional experience to drive operational performance and energy security.
Subject to regulatory approvals in Malaysia, Indonesia and other jurisdictions, as well as partners’ consent, the new company is expected to be formally established in 2026.
Petronas said it would continue engaging closely with stakeholders, including employees, host authorities and local communities, as part of its goal to nurture a “more vibrant industry” and strengthen Southeast Asia’s energy future. — November 3, 2025