KUALA LUMPUR (July 17): Searah Ltd, the 50:50 upstream joint venture (JV) between Petroliam Nasional Bhd (PETRONAS) and Italian energy group Eni looking to raise regional production to more than 500,000 barrels of oil equivalent per day within three years, has commenced operations in Malaysia, according to a statement.

Its Malaysian unit, Searah (Malaysia) Sdn Bhd, assumed operatorship of five upstream oil and gas assets from PETRONAS Carigali Sdn Bhd effective July 1, after all conditions for the transfer were fulfilled.

Searah’s portfolio includes 19 gas-producing and development assets, comprising five in Malaysia and 14 in Indonesia. The portfolio has an initial production base of about 300,000 barrels of oil equivalent per day. 

PETRONAS and Eni previously said they were assessing investments of up to US$20 billion (RM81.4 billion) over five years through Searah, which is supported by a US$6 billion credit facility.

The venture also has more than three billion barrels of oil equivalent of discovered resources and further exploration potential across Malaysia and Indonesia.

Searah Malaysia CEO Mohd Johan Ariff Mohd Supian said the company’s immediate focus would be on operating the assets safely and reliably while creating long-term value and building a foundation for future growth.

Searah was established under a “satellite model”, allowing the independently managed venture to access external financing and pursue its own development plans.