Eni and Petronas have officially formed a joint venture with equal ownership to manage 19 upstream oil and gas assets across Indonesia and Malaysia, backed by an investment plan exceeding USD 15 billion through 2026. The agreement, signed at the Abu Dhabi International Petroleum Exhibition & Conference (ADIPEC) on November 3, 2025, follows a framework deal from June 17, 2025. The new entity (NewCo) will combine the companies’ complementary portfolios, technical expertise, and regional experience to enhance operational efficiency, create long-term value, and strengthen leadership in the energy transition.
NewCo is expected to develop at least eight new projects and drill 15 exploration wells, aiming to produce around 3 billion barrels of oil equivalent (boe) from existing reserves, with an additional potential of 10 billion boe from future exploration. The venture plans an initial production capacity exceeding 300,000 boe per day, with targets to surpass 500,000 boe/d in the medium term. By leveraging existing assets and pursuing strategic initiatives in the Kutai Basin and Malaysia, Eni and Petronas aim to deliver sustainable growth while maximizing synergies in exploration, production, and asset management. The transaction is anticipated to be completed in 2026, following regulatory approvals in both countries, reflecting both companies’ commitment to responsible and transparent stakeholder engagement.
