BAKU, Azerbaijan, February 27. Eni and PETRONAS have signed a Memorandum of Understanding (MoU) to explore the creation of a joint venture that will oversee selected upstream assets in Indonesia and Malaysia, Trend reports.
This partnership is aimed at enhancing growth opportunities in the region and positioning both companies as key players in the LNG sector.
The joint venture will focus on approximately 3 billion barrels of oil equivalent (boe) in reserves, with an additional 10 billion boe in exploration potential. Both companies aim to reach a combined sustainable production of 500,000 barrels of oil equivalent per day (kboepd) in the medium term.
The venture will prioritize investments in new gas development projects, aligning with both companies' commitments to energy transition and addressing the increasing regional demand for domestic gas. A detailed business plan will be developed to explore opportunities in exploration, development, and portfolio expansion.
The assets will maintain their current operational structures, focusing on health, safety, environmental standards, and project efficiency. The companies will also continue to fulfill their sustainability commitments. The new joint venture is expected to raise external financing on a standalone basis.
Eni and PETRONAS have informed the Indonesian and Malaysian governments about their intentions. The finalization of the transaction will depend on approvals from relevant governments, regulators, and partners.