Eni and PETRONAS have announced an exclusive Memorandum of Understanding to progress detailed discussions on establishing a joint venture holding company to oversee selected upstream assets in Indonesia and Malaysia.

Both companies believe that this joint venture will create significant opportunities for growth, both in Malaysia and Indonesia, and is expected to generate substantial synergies towards becoming a major LNG player in the region, while delivering in the medium term a sustainable 500 kboepd production. The joint venture will combine approximately 3 billion barrels of oil equivalent (boe) of reserves with an additional 10 billion boe of potential exploration upside.

The joint venture will focus on investing in new gas development projects, reflecting the companies’ commitment to energy transition and supporting the increasing regional domestic gas demand. A comprehensive business plan will be developed to capture future opportunities in exploration, development, and potential portfolio growth.

Under this arrangement, the assets will retain their current operational structure, with a focus on health, safety and environment (HSE), project delivery and efficiency, while both companies continue to uphold their sustainability commitments. The new company will leverage the competencies and financial capabilities of both Eni and PETRONAS and is expected to raise external financing on a standalone basis.

Eni and PETRONAS aim to ensure stability in production for Malaysian assets while supporting timely new developments in Indonesia.

Both Eni and PETRONAS have informed the Indonesian and Malaysian governments of their intentions. 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.