Eni and Petronas have signed a binding agreement to merge their upstream oil and gas assets in Malaysia and Indonesia under a new company, NewCo, investing over $15 billion in the next five years. NewCo will target developing 3 billion boe in discovered reserves and exploring 10 billion boe of unrisked potential.

The joint venture between Eni and Petronas will create one of Southeast Asia’s largest upstream consolidations, combining 19 assets in Indonesia and Malaysia. With an initial production of over 300,000 boe/d, the company aims to grow to 500,000 boe/d, focusing on projects in the Kutei Basin and Malaysia.

Eni CEO Claudio Descalzi sees the partnership as transformational, leveraging operational synergies and accelerating project timelines. This deal aligns with Eni’s satellite model strategy, optimizing capital allocation and development cycles. NewCo is expected to become a key player in Southeast Asia’s upstream sector.

The partnership between Eni and Petronas reflects a trend of regional consolidation in the oil industry, particularly in Southeast Asia. NewCo’s formation could serve as a model for future ventures aimed at sustaining production while supporting low-carbon initiatives. Regulatory approvals are pending in Malaysia and Indonesia, with closing expected in 2026.

NewCo, the new joint venture between Eni and Petronas, is poised to shape Southeast Asia’s upstream landscape with scale, capital discipline, and integrated development strategies. This partnership underscores the trend of collaboration among oil companies to enhance efficiency, strengthen reserves, and position for growth in the energy transition era.

Read more at Yahoo Finance: Eni and Petronas Form $15 Billion Upstream Venture Across Malaysia and Indonesia