Core Insights - Eni S.p.A. has signed a Framework Agreement with PETRONAS to merge upstream oil and gas assets in Indonesia and Malaysia, leading to a new jointly operated company [1][9] - The joint venture will be equally owned, with a 50:50 valuation of the contributed assets, and aims to be financially self-sufficient [2][9] - The new entity is expected to combine approximately 3 billion barrels of oil equivalent (boe) in reserves and a production outlook of 500,000 barrels of oil equivalent per day (boepd), primarily from natural gas [3][9] Strategic Importance - Eni's CEO described the deal as a transformational milestone that will enhance energy security, infrastructure growth, and job creation in both Indonesia and Malaysia [4] - The joint venture is anticipated to solidify Eni and PETRONAS as major gas players in Southeast Asia, with significant long-term growth potential amid rising energy demand in the region [6] Future Outlook - The final agreement for the joint venture is expected by the fourth quarter of 2025, pending financial due diligence and necessary regulatory approvals [5] - The venture targets over 10 billion boe in exploration potential and a combined portfolio of more than 50 trillion cubic feet (TCF) of low-risk gas prospects [3][9]
Eni and PETRONAS Sign JV Deal to Combine Asia Oil & Gas Assets