Eni and Petronas have created a jointly owned company, NewCo, to combine 19 upstream oil and gas assets—14 in Indonesia and five in Malaysia—under a binding agreement signed on 2025‑11‑03.
The new entity will invest more than USD 15 billion (≈RM66 billion) over the next five years to develop at least eight new projects and drill 15 exploration wells, targeting a production base of over 300,000 boe/d that could grow to 500,000 boe/d.
NewCo aims to develop roughly 3 billion barrels of oil equivalent of discovered reserves and unlock an estimated 10 billion boe of unrisked exploration potential, with a focus on gas projects that align with both companies’ energy‑transition strategies.
The joint venture is part of Eni’s “satellite model” strategy, which creates independent, market‑focused entities to build critical mass and generate cash flow, and complements Petronas’ recent strategic transformation that emphasizes portfolio high‑grading and cost efficiency.
Management highlighted the partnership’s potential to set a new benchmark for efficient, cost‑effective, and responsible upstream development, noting that the Kutei Basin in Indonesia offers low‑risk, high‑potential opportunities such as the Geng North discovery and the Geng North–Gehem integrated development.
Eni’s CEO Claudio Descalzi said the deal would accelerate the company’s LNG infrastructure and gas portfolio, while Petronas’ CEO Tengku Muhammad Taufik emphasized the JV’s role in strengthening the company’s position in the Asia‑Pacific LNG market.
The agreement follows a framework signed on 2025‑06‑17 and an MoU announced in February 2025, and is expected to close in 2026 after regulatory approvals.
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