Eni and Petronas have entered an exclusive memorandum of understanding to progress talks on forming a joint venture (JV) holding company.
This would oversee some of their upstream assets in Indonesia and Malaysia. It would combine about 3 Bboe of reserves with exploration upside for a further 10 Bboe.
Both companies see potential for the JV to develop growth opportunities in Malaysia and Indonesia, including becoming a major LNG player in the region, with mid-term production of 50,000 boe/d.
They plan to invest jointly in new gas development projects to support growing domestic demands in the region, and they will put in place a program to add future opportunities in exploration, development and portfolio growth.
Under the arrangement, both companies’ assets will retain their current operational structure, with the duo expecting to raise external financing on a standalone basis.
Eni and Petronas have informed the Indonesian and Malaysian governments of their intentions. Any final transaction will be subject to governmental, regulatory and partner approvals.
