Italian energy firm Eni and Malaysian state-owned firm Petronas advance negotiations on forming a joint venture (JV) that would oversee selected upstream assets in Indonesia and Malaysia.
In this regard, the parties have entered into an exclusive memorandum of understanding (MoU).
The proposed partnership is expected to consolidate production activities, optimise resource development, and position both companies as a key player in the regional liquefied natural gas (LNG) market.
The JV is projected to achieve a sustainable production rate of 500,000 barrels of oil equivalent per day (kboepd) in the medium term.
The venture would integrate approximately three billion barrels of oil equivalent (boe) in existing reserves, with an estimated 10 billion boe of additional exploration potential. By pooling assets and operational expertise, Eni and Petronas aim to improve efficiency and capture synergies across their portfolios.
A core focus of the partnership will be new gas developments to meet growing regional demand while aligning with evolving energy market dynamics. A business plan will be developed to identify opportunities in exploration, field development, and potential portfolio expansion.
Under the proposed structure, existing operational frameworks will remain in place, with a continued emphasis on health, safety, and environmental (HSE) standards, alongside project execution and cost efficiency. The joint venture will also seek to secure external financing on an independent basis, leveraging the financial capabilities and technical expertise of both companies.
Eni operates in Indonesia’s upstream sector with assets spanning onshore and offshore exploration, production, and development. Among its key projects is the Merakes field in East Kalimantan, a deepwater development linked to existing infrastructure to support domestic supply and LNG exports.
In August 2024, Indonesian authorities approved Eni’s plan of development (POD) for the Geng North field (North Ganal PSC), the Gehem field (Rapak PSC), and the Gendalo and Gandang fields (Ganal PSC). These approvals support the creation of the Northern Hub, a new production centre in the Kutei Basin.
Eni had also secured a 20-year extension for its Indonesia Deepwater Development (IDD) licences, covering the Ganal and Rapak blocks.
The partnership with Petronas is expected to maintain production stability in Malaysia while advancing new projects in Indonesia.
Both companies have informed the Indonesian and Malaysian governments of their plans. The completion of any transaction will be subject to required governmental, regulatory, and partner approvals.
