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CompaniesEni SpAPetroliam Nasional BhdBp Plc ABU DHABI/MILAN, Nov 3 (Reuters) - Italy's Eni (ENI.MI), opens new tab and Malaysia's state energy company Petronas said on Monday they had signed a binding agreement to form a jointly owned company combining some of their oil and gas exploration and production assets in Indonesia and Malaysia. The new entity, NewCo, will manage 19 assets, 14 in Indonesia and five in Malaysia, with plans to invest over $15 billion in the next five years to develop about 3 billion barrels of discovered reserves and explore a further 10 billion barrels. Advertisement · Scroll to continueReport Ad The agreement was signed at the ADIPEC energy conference in Abu Dhabi. INDONESIA'S KUTEI BASIN IN FOCUS The deal is part of Eni's "satellite" strategy under which the Italian energy group has created several spin-offs centered around specific businesses and has supported their growth to make them independent. In a similar transaction, Eni teamed up with BP (BP.L), opens new tab in Angola to create their Azule Energy joint venture. NewCo will integrate a portfolio of gas-producing and development assets across Malaysia and Indonesia beginning with an initial production base of more than 300,000 barrels of oil equivalent per day (boe/d), Eni said in a statement. Advertisement · Scroll to continue Zoom in on the key points of this story with Reuters AI "By leveraging existing production assets and developing material initiatives in both the Kutei Basin and in Malaysia, we expect to deliver over 500,000 barrels of oil equivalent per day in the midterm," Eni Chief Executive Claudio Descalzi said in the statement. The new venture will operate as a financially self-sufficient entity, Eni added. NewCo will help Eni increase and diversify its liquefied natural gas offer in order to reach new potential customers, the group had previously said. The Italian group expects gas to reach 60% of its hydrocarbon production by 2030. Following the signing, Eni and Petronas will work to secure all required regulatory, governmental, and partner approvals, the statement said. They expect the deal to close in 2026. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV2136776366 About ConnatixV2136776366 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE Reporting by Yousef Saba in Abu Dhabi, Francesca Landini in Milan; Writing by Tala Ramadan and Francesca Landini; Editing by Kim Coghill, Louise Heavens and Emelia Sithole-Matarise Purchase Licensing Rights Yousef SabaThomson ReutersYousef covers Middle East energy out of Dubai, paying close attention to Gulf state oil giants, their roles in the ambitious region's transformational plans and the shift to green energy. He previously covered Gulf financial and economic news, with a focus on the fast-growing capital markets there. He joined Reuters in 2018 in Cairo, where he covered Egypt and Sudan, including its uprising. He previously had stints at a local paper in Cairo and in D.C. as an intern at Politico during the 2016 U.S. presidential election. EmailLinkedinFrancesca LandiniThomson ReutersFrancesca has covered since 2022 some of Europe's biggest energy groups, focusing on their efforts to decarbonize their business while ensuring growth and technological progress. She also reports about European Union's initiatives against climate change and energy regulation in Italy. She was named Reporter of the Year in 2022 by Reuters. Before energy, Francesca was part of Reuters aerospace and defense reporting team. She is graduated in Economics and loves painting in her free time.EmailXLinkedin
