Eni and PETRONAS have announced a binding agreement to establish an independent company (NewCo) under equal ownership by combining their respective upstream assets in Indonesia and Malaysia. The signing took place at the global energy event ADIPEC, in the presence of Eni CEO, Claudio Descalzi and PETRONAS President and Group CEO, Tengku Muhammad Taufik.
The agreement follows the Framework Agreement signed by the two companies on 17th June 2025 and establishes a new entity that will manage 19 assets: 14 in Indonesia and five in Malaysia – representing significant enterprise value. Under NewCo, Eni and PETRONAS will combine complementary portfolios, technical strengths, and regional expertise to deliver long-term value creation, operational excellence, and leadership in the energy transition.
NewCo will operate as a financially self-sufficient entity, with plans to invest in excess of USD 15 billion over the next five years. This investment will support the development of at least eight new projects and the drilling of 15 exploration wells, with the aim of developing approximately 3 billion barrels of oil equivalent (boe) of discovered reserves. NewCo also aims to unlock an estimated 10 billion boe of unrisked exploration potential. NewCo will integrate a material portfolio of gas-producing and development assets across Malaysia and Indonesia, beginning with an initial production base of over 300,000 barrels of oil equivalent per day (boe/d) and plans to grow to more than 500,000 boe/d of sustainable production in the medium term.
The creation of NewCo will enable Eni to accelerate project development cycles and optimize capital allocation, and also achieve operational synergies in exploration, production, and asset management, while capturing growth from both mature producing fields and high-opportunity exploration areas.