The Italian oil and gas company Eni and the Malaysian group Petronas have announced an exclusive memorandum of understanding (MoU), which aims to establish a joint venture to oversee the companies’ upstream assets in Indonesia and Malaysia. Eni and Petronas expect this joint venture to become a major LNG player in the region, which could deliver a production of 500 kboe/d in the medium term. In addition, the joint venture would combine approximately 3 Gboe of proved reserves with an additional 10 Gboe of potential exploration upside.
The joint venture will notably focus on investing in new gas development projects. Under the arrangement, the assets will retain their current operational structure. Eni and Petronas have informed the Indonesian and Malaysian governments of their intentions, and any final transaction will be subject to relevant governmental, regulatory, and partner approvals.