Eni e Petronas, the Malaysian national oil and gas company, have signed a Framework Agreement which establishes the will to establish a new joint venture with equal shareholdingsThe new company will operate in two strategic markets for the energy development of Southeast Asia: Indonesia and Malaysia.
The agreement is based on a Exclusive Memorandum of Understanding recently signed by the two companies and defines the principles of the shareholders agreement, including the criteria for the valuation of the assets that will be contributed to the new entity. The future joint venture will be financially independent and will follow the satellite model already adopted by Eni in Norway and Angola with the experiences of Var Energi and Azule, aiming to maximize industrial and operational synergies.
Ambitious goals: 500 thousand barrels per day and gas in the foreground
The business combination between Eni and Petronas aims to create a regional energy hub with a sustainable production, in the medium term, of approximately 500 thousand barrels of oil equivalent per day (kboepd), with a prevalence of natural gas. The initiative will integrate estimated reserves of approximately 3 billion barrels equivalent (boe), and will be able to count on a additional exploration potential of 10 billion boe, with a particular focus on low geological risk areas.
As it stated by Claudio Descalzi, CEO of Eni, the new company “will bring infrastructure, energy and employment, generating industrial and financial synergies between two major players and strengthening the energy centrality of Indonesia and Malaysia”.
One of the strong points of the alliance will be precisely the complementarity between assets of Eni and Petronas, combined with the ability of the two companies to operate in complex contexts, integrating technologies, know-how and capital. Another key element will be thelocal impact, creating value for domestic communities and markets.
Next steps: due diligence and approvals by end of 2025
The framework agreement signed today represents a crucial stage towards the definition of the final agreementswhich should be signed by the end of the fourth quarter of 2025, at the end of the financial due diligence process.
In the meantime, both Eni and Petronas have already informed the governments of Indonesia and Malaysia on the progress of the operation. The finalization of the transaction will however be subject to the necessary Regulatory approvals, government and industrial partners involved.
