Italian major Eni and Malaysia’s national energy company Petronas have signed a binding agreement to create a 50-50 joint venture (NewCo) combining their upstream assets in Indonesia and Malaysia, the companies announced on Monday.
NewCo will be owned equally by both parties and will manage an upstream portfolio comprising 14 assets in Indonesia and five in Malaysia. Operating as a financially independent company, NewCo will undertake investments projected to exceed USD 15 billion over the next five years to develop discovered reserves for approximately 3 billion boe and unlock an estimated 10 billion barrels through exploration.
Leveraging existing infrastructure and a production base of more than 300,000 boepd, the partners aim to increase output across the portfolio to 500,000 boepd in the medium term, with current plans calling for at least eight new projects and the drilling of 15 exploration wells.
“This agreement is a transformational moment for Eni. This opportunity will deliver impressive value creation for Eni, PETRONAS, Indonesia and Malaysia, enabled by our exceptional exploration skills and track record of delivering disciplined, fast-track projects,” said Eni CEO Claudio Descalzi.
The signing took place at ADIPEC 2025 in Abu Dhabi. Subject to regulatory approval in relevant jurisdictions, the closing of the deal and the formal establishment of NewCo are expected in 2026.