Eni and PETRONAS Form $15B JV to Develop 19 Upstream Assets in Indonesia, Malaysia

Italy's Eni and Malaysia's state energy firm Petronas have signed a binding agreement to create a jointly owned company named NewCo, which will combine their upstream oil and gas assets in Indonesia and Malaysia. NewCo will oversee 19 assets, with an initial production of over 300,000 barrels of oil equivalent per day, aiming to increase production to more than 500,000 barrels per day in the medium term. The company plans to invest over $15 billion in the next five years to develop about 3 billion barrels of discovered reserves and explore an additional 10 billion barrels. This joint venture reflects Eni's strategy to create independent spin-offs focused on specific business areas, similar to its partnership with BP in Angola. NewCo will operate as a financially self-sufficient entity, combining complementary portfolios and expertise to drive operational excellence and leadership in the energy transition. The agreement was signed at the ADIPEC conference in Abu Dhabi with top executives from both companies present.