Eni and PETRONAS have signed a Memorandum of Understanding (MoU) to engage in thorough negotiations on establishing a joint venture holding company. The two firms aim to run selected upstream assets in Indonesia and Malaysia, solidifying their position in the Southeast Asia energy market.
Strategic Partnership for Growth
The MoU between Eni and PETRONAS will release significant growth opportunities in Indonesia and Malaysia. The companies anticipate it to yield robust synergies, making them industry leaders in the liquefied natural gas (LNG) sector. Targeting the medium term with the aim of sustaining the production rate of 500,000 barrels of oil equivalent per day (kboepd), the joint venture will possess around 3 billion barrels of oil equivalent (boe) in reserves and another 10 billion boe of exploration upside potential
Emphasis on Gas Development and Energy Transition
Central to the joint venture’s strategy is investment in new gas development projects, aligning with both companies’ energy transition and responding to the growing regional demand for domestic gas. The joint venture will create a business plan to pursue new opportunities and diversify its portfolio in the region.
Under this joint venture, the assets involved will maintain their existing operational structure. The firms will focus on health, safety, environment (HSE), and project delivery efficiency. Eni and PETRONAS will continue to actively maintain their sustainability commitments as they proceed with the project. The joint venture will leverage the combined expertise and financial strength of both companies and will secure external financing independently.
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Stabilizing and Expanding Regional Production
Eni and PETRONAS will ensure stable production in Malaysia while propelling timely development of new projects in Indonesia. The joint venture will enhance both firms’ regional presence and ensure continued success in the growing LNG market.
The two firms have notified the Indonesian and Malaysian authorities of their intention to go ahead with this venture. However, any final transaction will be subject to the approval of relevant governmental, regulatory, and partner entities.