Eni and Petronas Form New Upstream Joint Venture in Indonesia and Malaysia with $15 Billion Investment Plan

Historic Agreement Signed at ADIPEC

Italian energy giant Eni and Malaysia's state-owned Petronas officially announced a binding agreement on November 3, 2025, to establish a new independent company, provisionally named NewCo. This strategic joint venture will combine their respective upstream assets across Indonesia and Malaysia. The signing ceremony took place at the global energy event ADIPEC in Abu Dhabi, attended by Eni CEO Claudio Descalzi and Petronas President and Group CEO Tengku Muhammad Taufik.

This agreement follows a Framework Agreement signed on June 17, 2025, and an initial Memorandum of Understanding in February 2025, solidifying a significant regional energy partnership.

Scope and Investment of the New Entity

The newly formed NewCo will operate as a financially self-sufficient entity, managing a substantial portfolio of 19 assets – 14 in Indonesia and five in Malaysia. A key component of this venture is a planned investment exceeding $15 billion over the next five years. This capital injection is earmarked to support:

• The development of at least eight new projects.
• The drilling of 15 exploration wells.
• The development of approximately 3 billion barrels of oil equivalent (boe) of discovered reserves.
• Unlocking an estimated 10 billion boe of unrisked exploration potential.

The combined assets are expected to begin with an initial production base of over 300,000 barrels of oil equivalent per day (boe/d), with ambitious plans to grow to more than 500,000 boe/d of sustainable production in the medium term.

Strategic Rationale and Regional Impact

The creation of NewCo is designed to leverage the complementary portfolios, technical strengths, and regional expertise of both Eni and Petronas. Eni CEO Claudio Descalzi commented that the agreement is a 'transformational moment for Eni,' emphasizing the synergies generated across assets, expertise, and financial capabilities. The venture is also part of Eni's 'satellite model strategy,' a proven approach seen in successful ventures like Var Energy in Norway and Azule Energy in Angola.

For Petronas, this marks its first foray into such a satellite business model, which its President and Group CEO, Tengku Muhammad Taufik, described as setting 'a new benchmark for more efficient, cost-effective and responsible upstream development.' The new company will integrate a material portfolio of gas-producing and development assets, including those in Indonesia's Kutei Basin, known for its low-risk, high-potential characteristics due to existing infrastructure.

Outlook and Approvals

The deal is expected to reach closing in 2026, contingent upon securing all necessary regulatory, governmental, and partner approvals in both Malaysia and Indonesia. Both companies have committed to transparent engagement with all stakeholders throughout this process. This collaboration is poised to significantly enhance the energy landscape in Southeast Asia, contributing to long-term value creation and operational excellence in the region's upstream sector.