Eni and Petronas Form $15 Billion Upstream Venture Across Malaysia and Indonesia

Core Insights - Eni and Petronas have signed a binding agreement to merge their upstream oil and gas assets in Malaysia and Indonesia into a new jointly owned company, NewCo, which will invest over $15 billion in the next five years [1][2][3] Group 1: Agreement Details - The agreement was signed during the ADIPEC energy conference and represents one of Southeast Asia's largest upstream consolidations, combining 19 assets—14 in Indonesia and five in Malaysia [2] - NewCo will be financially self-sufficient and aims to develop at least eight new projects and 15 exploration wells, targeting approximately 3 billion barrels of oil equivalent (boe) in discovered reserves and exploring an additional 10 billion boe of unrisked potential [3] Group 2: Production and Growth Plans - NewCo will start with an initial production of over 300,000 boe per day, with plans to grow to 500,000 boe per day in the medium term, primarily driven by projects in the Kutei Basin in Indonesia and new developments in Malaysia [4][5] - Eni's CEO emphasized the operational synergies and accelerated project timelines that the partnership will enable, projecting over 500,000 boe per day in the mid-term [5] Group 3: Strategic Alignment - The deal aligns with Eni's "satellite model strategy," which focuses on creating regionally focused, semi-independent upstream companies to optimize capital allocation and attract strategic partners while maintaining operational control [6] - For Petronas, this consolidation enhances its upstream footprint in key regional markets and supports its strategy to improve efficiency and strengthen reserves amid the global energy transition [7]