Eni and PETRONAS have signed a binding agreement to create a new joint venture (JV) company, NewCo, which will combine their upstream operations in Indonesia and Malaysia. The agreement was signed on the sidelines of the ADIPEC energy conference by Eni CEO Claudio Descalzi and PETRONAS President and Group CEO Tengku Muhammad Taufik.
The newly formed, financially independent entity plans to invest over $15 billion within the next five years. This investment will fund the development of at least eight new projects and the drilling of 15 exploration wells, targeting around 3 billion barrels of oil equivalent (boe) in discovered reserves. Furthermore, NewCo seeks to unlock an estimated 10 billion boe of unrisked exploration potential.
NewCo will manage a substantial portfolio across Malaysia and Indonesia, starting with an initial production base of more than 300,000 barrels of oil equivalent per day (boe/d). It aims to increase output to over 500,000 boe/d of sustainable production in the medium term. The portfolio includes 19 assets—14 in Indonesia and five in Malaysia—marking substantial enterprise value.
Through this JV, Eni and PETRONAS will merge their complementary portfolios, technical capabilities, and regional experience to drive long-term value, enhance operational efficiency, and strengthen their position in the energy transition.
Following the signing, the companies will move forward with obtaining the necessary regulatory, governmental, and partner approvals. Eni anticipates that the transaction will close in 2026.
In March 2025, Eni entered into a Memorandum of Understanding (MoU) with PETRONAS to advance talks on forming a joint venture holding company that would manage specific upstream assets in Indonesia and Malaysia.
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