ENI, and Malaysia's state energy firm Petroliam Nasional Bhd (PETRONAS) signed a memorandum of understanding to create a joint venture to oversee some upstream assets in Indonesia and Malaysia, the Italian energy group said in Milan on Thursday.
A statement released by Petronas today said; “PETRONAS and Eni have announced an exclusive Memorandum of Understanding (MoU) 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 (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 HSE, project delivery and efficiency, while both companies continue to uphold their social investment commitments.
The new company will leverage the competencies and financial capabilities of both PETRONAS and Eni and is expected to raise external financing on a standalone basis.
PETRONAS and Eni aim to ensure stability in production for Malaysian assets while supporting timely new developments in Indonesia.
Both PETRONAS and Eni have informed the Indonesian and Malaysian governments of their intentions. Any final transaction will be subject to relevant governmental, regulatory, and partner approvals, it said.– February 27. 2025
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