Abu Dhabi, 3 November 2025 — Eni and PETRONAS have entered into a binding agreement to create an equally owned joint venture company to manage their upstream assets in Indonesia and Malaysia. The signing took place during ADIPEC 2025, attended by Eni CEO Claudio Descalzi and PETRONAS President and Group CEO Tengku Muhammad Taufik.
The agreement builds on a Framework Agreement signed on 17 June 2025 and provides for the establishment of a new entity, temporarily named NewCo. This company will oversee 19 upstream assets — 14 in Indonesia and five in Malaysia — combining both firms’ portfolios and technical expertise. The venture aims to improve operational efficiency, ensure long-term value creation, and contribute to the energy transition in the region.
NewCo will operate as an independent and financially self-sustaining organization, with planned investments exceeding $15 billion over the next five years. The investment will support at least eight new projects and 15 exploration wells, targeting the development of approximately 3 billion barrels of oil equivalent (boe) in discovered reserves and around 10 billion boe of unrisked exploration potential.
The company will start operations with a production base of over 300,000 barrels of oil equivalent per day (boe/d) and expects to increase this to above 500,000 boe/d in the medium term. Its portfolio will include key gas-producing and development assets across Indonesia and Malaysia.
Through NewCo, Eni expects to accelerate project development, improve capital efficiency, and strengthen synergies in exploration, production, and asset management. The initiative aligns with Eni’s satellite company model, following ventures such as Var Energy in Norway, Azule in Angola, and Ithaca in the UK.
Claudio Descalzi, Eni’s CEO, said the agreement marks “a transformational moment” for the company, highlighting that by combining PETRONAS’s and Eni’s capabilities, production is expected to exceed 500,000 boe/d in the medium term.
Both companies will now seek regulatory, governmental, and partner approvals in Indonesia and Malaysia. The transaction is expected to close in 2026, subject to the customary approval processes. Eni stated it will maintain transparent engagement with employees, host authorities, partners, and local communities throughout the transition.
