Italy's Eni and Malaysia's Petronas announced Monday a binding agreement to form a jointly owned independent company that will combine their upstream assets in Indonesia and Malaysia.
The agreement follows a framework deal signed in June and establishes a new entity that will manage 19 assets, 14 in Indonesia and five in Malaysia, representing significant enterprise value, Eni said in a statement.
Under the new company called NewCo, Eni and Petronas will merge complementary portfolios, technical strengths, and regional expertise to drive long-term value creation, operational excellence, and leadership in the energy transition.
NewCo will operate as a financially self-sufficient entity and plans to invest more than $15 billion over the next five years.
The investment will support the development of at least eight new projects and the drilling of 15 exploration wells, targeting about 3 billion barrels of oil equivalent (boe) in discovered reserves.
The company also aims to unlock an estimated 10 billion boe of unrisked exploration potential.
It will integrate a substantial portfolio of gas-producing and development assets across Malaysia and Indonesia, starting with an initial production base of more than 300,000 barrels of oil equivalent per day (boe/d) and seeking to expand to over 500,000 boe/d in the medium term.
The signing took place during the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) in the presence of Eni CEO Claudio Descalzi and Petronas President and Group CEO Tengku Muhammad Taufik.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
