Eni and Petronas have signed a binding agreement to establish an independent, jointly owned company that will combine their upstream assets in Indonesia and Malaysia. The signing took place on 3 November during the Abu Dhabi International Petroleum and Exhibition and Conference with Claudio Descalzi, CEO of Eni, and Tengku Muhammad Taufik, president and group CEO of Petronas, in attendance.
The agreement follows a memorandum of understanding signed by the two companies on 17 June and creates a new entity that will manage 14 assets in Indonesia and five in Malaysia.
According to the companies, the joint venture (JV) will combine complementary portfolios, technical strengths, and regional expertise to deliver long-term value, operational excellence, and leadership in the energy transition.
The new company will operate as a financially self-sufficient entity, with plans to invest more than $15 billion over the next 5 years. The capital program will support the development of at least eight new projects and the drilling of 15 exploration wells, targeting approximately 3 billion BOE of discovered reserves. The partners also expect the new entity to unlock an estimated 10 billion BOE of unrisked exploration potential.
“This historic partnership between Petronas and Eni is envisaged to 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, as it paves the way for us to deliver greater and more sustainable value to our customers, host nations, the greater upstream sector, as well as our stakeholders," Tengku Taufik said in an announcement.
Plans include integrating a portfolio of gas-producing and development assets across Malaysia and Indonesia, starting with an initial production base exceeding 300,000 BOE/D and a medium-term goal of surpassing 500,000 BOE/D.
The new company will focus on supporting liquefied natural gas (LNG) operations by developing both new and existing gas projects, including those in the Kutei Basin. The basin is considered a low-risk and high-potential asset because of its established production, transport, and LNG infrastructure, as well as a mature geological understanding of the subsurface.
Eni said the JV will enable it to accelerate project development cycles, optimize capital allocation, and achieve operational synergies across exploration, production, and asset management while capturing growth from both mature producing fields and high-potential exploration areas.
“This agreement is a transformational moment for Eni. We have joined forces with Petronas to operate assets across Indonesia and Malaysia, generating synergies across assets, expertise, and financial capabilities,” Descalzi said in a statement.
The new business will form part of Eni’s satellite model strategy, following similar ventures such as Var Energy in Norway, Azule in Angola, and Ithaca in the UK.
Following the signing, Eni and Petronas will pursue all required regulatory, governmental, and partner approvals in both Malaysia and Indonesia. Eni expects the transaction to close in 2026, pending customary and governmental approvals. Throughout the process, both companies said they will maintain transparent engagement with employees, host authorities, JV partners, and local communities to ensure a responsible launch that supports long-term collaboration and growth in the region.
