Eni S.p.A. and Petroliam Nasional Berhad (PETRONAS) formalised in Kuala Lumpur the signing of a framework agreement to merge their main assets in Malaysia and Indonesia. The move aims to create a new company with equal ownership, where both oil groups have agreed on governance and asset valuation. The agreement is based on a 50:50 split, following a joint evaluation of all interests, and follows the recently concluded exclusive memorandum of understanding.
A self-sufficient entity with an extended portfolio
The new entity will be established to operate with financial autonomy and will adopt an organisational model inspired by previous Eni joint ventures such as Var Energy in Norway and Azule in Angola. Eni indicated that the merged company will combine a portfolio of over 50 trillion cubic feet (TCF) of low-risk exploration potential and approximately 3 billion barrels of oil equivalent (boe) in proven reserves, plus an additional 10 billion boe in exploration upside.
The merged assets will focus on natural gas production, a key sector for both countries’ economies. The target is to achieve stable medium-term production of 500,000 barrels of oil equivalent per day (kboepd), primarily from gas. Eni’s management noted that combining the technical and financial expertise of both companies is expected to create new synergies in the region.
Regional impact and next regulatory steps
According to Eni, the transaction will reinforce local energy supply and support infrastructure development, while creating job opportunities in both countries. The Indonesian and Malaysian governments have been informed of the transaction’s progress, which remains subject to the approval of relevant authorities and sector partners.
PETRONAS and Eni have also agreed on the main principles of the shareholders’ agreement and plan to finalise the definitive agreements by the fourth quarter of 2025, after financial due diligence. Claudio Descalzi, Chief Executive Officer of Eni, stated that this partnership aims to “generate synergies in assets, expertise and financial capabilities”.
The creation of this joint venture comes in the context of major energy companies transforming their asset portfolios and could reshape the regional balance of the natural gas market in Southeast Asia. Eni and PETRONAS are planning further operational expansion, relying on a jointly evaluated asset base and significant exploration growth potential. Final approval will depend on regulatory authorisations and the outcome of ongoing financial audits, according to official statements from both groups published on 17 June in their respective communications.
