The Italian energy company Eni S. p. A. and the Malaysian oil and gas company PETRONAS (Petroliam Nasional Berhad) have signed a final agreement on the creation of a new joint venture with equal equity participation in Indonesia and Malaysia. This is reported in a press release from Eni.
The agreement is an addendum to the framework agreement signed by Eni and PETRONAS in June 2025, and provides for the creation of a new enterprise that will manage 19 assets, including fourteen in Indonesia and five in Malaysia.
Under the NewCo name, the deal participants will combine the complementary portfolios, technical strengths and regional expertise of Eni and PETRONAS in the field of exploration and production in Indonesia and Malaysia in order to ensure leadership in the energy sector.
NewCo will be a financially independent company that plans to invest more than $15 billion over five years to develop eight new projects and drill 15 exploration wells to produce 3 billion barrels of oil equivalent. NewCo will also explore potential resources estimated at 10 billion oil equivalent. NewCo will combine its portfolio of gas production and development assets in Malaysia and Indonesia, starting with an initial production base of 300,000 barrels of oil equivalent per day.
The creation of NewCo will allow Eni to accelerate project development cycles and optimize capital allocation, as well as achieve operational synergies in exploration, production and asset management, profiting from developed fields and promising areas.
The new business is in line with Eni's strategy to create satellite models and will be developed by analogy with the successful enterprises of Var Energy in Norway, Azule in Angola and Ithaca in the UK.
The deal is expected to be completed in 2026 after receiving regulatory approvals and the governments of Malaysia and Indonesia. Throughout the merger process, Eni will work with all stakeholders to launch a new enterprise that will strengthen the foundation for long-term cooperation and sustainable growth in the region.
PETRONAS is a national Malaysian oil and gas company. PETRONAS is engaged in a wide range of activities in the oil and gas sector in 20 countries (oil and gas exploration and production, marketing and marketing of petroleum products, gas liquefaction, petrochemical production). The headquarters is located in Kuala Lumpur (Malaysia).
Eni S. p. A. is an Italian multinational energy company and one of the largest oil companies in the world with a market capitalization of 40 billion euros. The main production regions include Africa and Kazakhstan, while the main sales markets are Italy and other European countries. The headquarters is located in San Donato Milanese (Milan).
Read also in our Telegram channel "Mergers and acquisitions. AK&M».
