Eni and PETRONAS to form joint venture for upstream assets

Italy’s Eni and Malaysia’s PETRONAS have signed an exclusive memorandum of understanding (MoU) to explore the creation of a joint venture holding company to manage selected upstream assets in Indonesia and Malaysia. The partnership aims to enhance growth opportunities in both countries while strengthening their position as a key liquefied natural gas (LNG) player in the region.

The proposed joint venture is expected to oversee production of approximately 500,000 barrels of oil equivalent per day (kboepd) in the medium term. It will consolidate an estimated 3 billion barrels of oil equivalent (boe) in reserves, with a further 10 billion boe of potential exploration upside.

Both companies view this collaboration as a strategic move to support regional energy transition goals and address increasing domestic gas demand. A comprehensive business plan will be developed to capitalise on future opportunities in exploration, development, and portfolio expansion.

Operational structure and sustainability commitments

Under the agreement, the assets will maintain their current operational structure, ensuring a strong focus on health, safety, and environmental (HSE) standards, as well as efficient project delivery. The joint venture will leverage the financial strength and technical expertise of both companies, while also securing external financing independently.

Eni and PETRONAS have also reaffirmed their commitment to ensuring production stability in Malaysia while advancing new developments in Indonesia. The companies have already notified the respective governments of their intentions, and any final agreement will be subject to regulatory and partner approvals.

This collaboration underscores both firms’ ambitions to drive long-term energy security and sustainability in Southeast Asia.