KUALA LUMPUR (Feb 27): Petroliam Nasional Bhd (Petronas) and integrated energy company Eni have signed an exclusive memorandum of understanding to form a joint-venture holding company to oversee selected upstream assets in Indonesia and Malaysia.

In a statement on Thursday, Petronas said both companies believe this partnership will create significant growth opportunities in both countries.

It is expected to generate substantial synergies towards becoming a major liquefied natural gas (LNG) player in the region while maintaining a sustainable production level of 500,000 barrels of oil equivalent per day in the medium term.

“The joint venture will combine about three billion barrels of oil equivalent (boe) of reserves with an additional 10 billion boe of potential exploration upside,” Petronas said.

The joint venture will focus on investing in new gas development projects, reflecting the companies’ commitment to energy transition and supporting the increasing regional domestic gas demand, it said.

Petronas said a comprehensive business plan will be developed to capture future opportunities in exploration, development, and potential portfolio growth.

“Under this arrangement, the assets will retain their current operational structure, with a focus on health, safety, and environment, project delivery and efficiency, while both companies continue to uphold their social investment commitments.

“The new company will leverage the competencies and financial capabilities of both Petronas and Eni and is expected to raise external financing on a standalone basis,” it said.

Petronas and Eni aim to ensure stability in production for Malaysian assets while supporting timely new developments in Indonesia.

“Both companies have informed the Indonesian and Malaysian governments of their intentions. Any final transaction will be subject to relevant governmental, regulatory, and partner approvals,” the statement added.

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