Eni and Petronas Forge Major Southeast Asia Upstream Joint Venture

Core Insights - Eni and Petronas have formed a new joint venture to combine their upstream assets in Indonesia and Malaysia, with plans to invest $15 billion over the next five years [1][2] - The joint venture aims to develop approximately 3 billion barrels of oil equivalent (boe) of discovered reserves and unlock an estimated 10 billion boe of unrisked exploration potential [2] - The new entity will have an initial production base of over 300,000 boe per day, with plans to increase this to more than 500,000 boe per day in the medium term [3] Investment and Development Plans - The investment will support the development of at least eight new projects and the drilling of 15 exploration wells [2] - Eni and Petronas will seek necessary regulatory and governmental approvals in both countries, with the deal expected to close in 2026 [4] Strategic Context - This joint venture is part of Eni's "satellite model strategy," which includes similar ventures in other regions [4][5] - Eni has been focusing on divesting or creating joint ventures for international oil and gas projects while also spinning off low-carbon projects [5]