By Joshua Kirby
Eni is to combine its upstream oil-and-gas assets in Indonesia and Malaysia with those of Malaysia's state-owned Petronas, with the new company targeting some $15 billion in investment and an uptick in production.
The two companies have signed a binding agreement for the creation of the joint venture, Italy's Eni said Monday, after an initial agreement set out over the summer. The new entity will manage 19 assets, comprising 14 in Indonesia and five in Malaysia.
The new company will be "financially self-sufficient," Eni said, with plans to invest more than $15 billion over the next five years. That will support the development of at least eight new projects and the drilling of 15 exploration wells. The company aims to develop around 3 billion barrels of oil equivalent of discovered reserves, and unlock around 10 billion BOE in exploration potential, Eni said.
The JV will start with a production base of around 300,000 barrels of oil equivalent a day, and plans to grow to more than 500,000 BOE/D over the medium term, Eni said.
"This opportunity will deliver impressive value creation for Eni, Petronas, Indonesia and Malaysia, enabled by our exceptional exploration skills and track record of delivering disciplined, fast-track projects," Eni Chief Executive Claudio Descalzi said.
Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby
(END) Dow Jones Newswires
11-03-25 0250ET
