Published by Global Banking & Finance Review®
Posted on November 3, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleEni and Petronas have formed a joint venture in Asia, combining assets in Indonesia and Malaysia, with plans to invest $15 billion over five years.
By Yousef Saba and Francesca Landini
DUBAI (Reuters) -Italy's Eni <ENI.MI> and Malaysia's state energy firm Petronas said on Monday they had signed a binding agreement to form a jointly owned company combining their upstream oil and gas assets in Indonesia and Malaysia.
The new entity, NewCo, will manage 19 assets, 14 in Indonesia and five in Malaysia, with plans to invest over $15 billion in the next five years to develop about 3 billion barrels of discovered reserves and explore a further 10 billion barrels.
The agreement was signed at ADIPEC in Abu Dhabi.
The move is part of Eni's "satellite" strategy under which the Italian energy group has created several spin-offs centered around specific businesses and has supported their growth to make them independent.
In a similar transaction, Eni teamed up with BP in Angola to create their Azule Energy joint venture.
The NewCo with Petronas will integrate a portfolio of gas-producing and development assets across Malaysia and
Indonesia beginning with an initial production base of more than 300,000 barrels of oil equivalent per day (boe/d).
It plans to grow to more than 500,000 boe/d of production in the medium term.
It will operate as a financially self-sufficient entity, Eni said in a statement.
(Reporting by Yousef Saba in Dubai, Francesca Landini in Milan; Writing by Tala Ramadan and Francesca Landini; Editing by Kim Coghill and Louise Heavens)
A joint venture is a business arrangement where two or more parties agree to pool their resources for a specific project or business activity, sharing profits and losses.
Upstream oil and gas assets refer to the exploration and production segment of the industry, focusing on locating and extracting crude oil and natural gas.
Investment planning is the process of identifying financial goals and creating a strategy to achieve them through various investment vehicles.
The energy sector encompasses industries involved in the production and distribution of energy, including oil, gas, renewable energy, and electricity.
Explore more articles in the Finance category
