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Italian energy giant Eni and Malaysia’s Petronas have signed a binding agreement to establish an independent company by combining their upstream assets in Indonesia and Malaysia. The agreement establishes a new entity, under equal ownership, that will manage 19 assets – 14 in Indonesia and five in Malaysia. The new company will operate as a financially self-sufficient entity, with plans to invest in excess of $15bn over the next five years. This investment will support the development of at least eight new projects and the drilling of 15 exploration wells, to develop approximately 3bn barrels of oil equivalent of discovered reserves. The company will look to unlock an estimated 10bn boe of unrisked exploration potential. It will also integrate a material portfolio of gas-producing and development assets across Malaysia and Indonesia, beginning with an initial production base of over 300,000 boepd and plans to grow to more than 500,000 boepd of sustainable production in the medium term. The new business is part of Eni’s satellite model strategy, following similar successful ventures such as Var Energy in Norway, Azule in Angola, and Ithaca in the UK. Eni expects the deal to reach closing in 2026, following all the customary and governmental approvals.
