Eni and PETRONAS have signed in Kuala Lumpur today a Framework Agreement that sets the basis for the creation of the new, jointly participated company, that will oversee assets in Indonesia and Malaysia through business combination.

This agreement builds on the recent exclusive Memorandum of Understanding signed by the two companies and includes the Key Principles of the Shareholder Agreement. The new Company will be established and operated as a financially self-sufficient entity and the parties have agreed on the asset-level valuations to be contributed to the new company, resulting in a 50:50 proportion.

The new business combination will be strategically aligned to the Eni satellite model and follows what the Company already pursued with the upstream activities in Norway and Angola with the creation of Var Energy and Azule.

The signature represents a key milestone and marks the final alignment achieved by Eni and PETRONAS on the respective assets valuation. In turn, it will also set the basis for the Final Agreements that Eni and PETRONAS expect to sign by 4Q 2025, following the completion of the financial due diligence.

Eni CEO Claudio Descalzi commented that “This is another significant step towards the new company that Eni and PETRONAS have agreed to create across Indonesia and Malaysia, generating synergy in terms of assets, expertise and financial capabilities, in a transformational model that further strengthens the huge potential of the two countries. The new company will have a strong regional impact on gas production, bringing additional energy, infrastructures and employment for the benefit of both Indonesia and Malaysia. The new company will also have the opportunity to further build on an amazing, combined portfolio of more than 50 TCF of additional, low risk exploration potential”.

The new Company will deliver in the medium term a sustainable production of 500 kboepd, mainly gas, and it will combine approximately 3 billion barrels of oil equivalent (boe) of reserves with an additional 10 billion boe of potential exploration upside.

Both Eni and PETRONAS have informed the Indonesian and Malaysian governments of the progress of the transaction. Any final transaction will be subject to relevant governmental, regulatory, and partner approvals.

About Eni

Eni (NYSE: E) is an integrated energy company employing more than 34.000 people in 69 countries in the world. Eni engages in oil and natural gas exploration, field development and production, as well as in the supply, trading and shipping of natural gas, LNG, electricity and fuels. Through refineries and chemical plants, Eni processes crude oil and other oil-based feedstock to produce fuels, lubricants and chemical products that are supplied to wholesalers or through retail networks or distributors.

About Petronas

Petroliam Nasional Berhad (PETRONAS) is a global energy company committed to producing and delivering energy and solutions needed to advance society responsibly and sustainably.

As Malaysia’s national oil and gas company, we safeguard and manage the nation’s hydrocarbon resources. Our aim is to maximise value through our integrated business model to meet the energy needs of the nation and our customers across the globe. Our portfolio includes oil and gas, petrochemicals, petroleum products, as well as a range of cleaner energy solutions.

Ensuring sustainable practices across our operations is important to how we conduct our business. Our goal is to achieve net zero carbon emissions by 2050, and we strive to be a valuable partner to our stakeholders in transitioning to a lower carbon energy future in a just and responsible manner.