Malaysia & Indonesia M&A - Eni and PETRONAS agree to establish new JV Satellite company

On November 3rd, Eni and PETRONAS announced that they had signed a binding agreement to established a new 50:50 JV company called "NewCo" (final name pending) that will combine a number of Eni and PETRONAS assets in Indonesia and Malaysia. This formal agreement follows the signing of a Framework Agreement signed by the two companies on 17th June 2025.

According to the Eni press release "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."

What assets will be involved?

No formal announcement has been made of the assets that will be involved, it has simply been stated that NewCo will manage 19 assets: 14 in Indonesia and five in Malaysia. It has further been reported that of these 19 assets, Eni will contribute 9 upstream assets from Indonesia, with PETRONAS contributing 10 assets across Indonesia and Malaysia.