Eni and PETRONAS Unveil $15 Billion Upstream Venture in Southeast Asia
Discover how Eni and PETRONAS’s $15 billion upstream joint venture in Malaysia and Indonesia aims to boost production, accelerate projects, and reshape Southeast Asia’s energy landscape with strategic investment.
Key Takeaways
- Eni and PETRONAS commit $15 billion to a new upstream venture
- NewCo will manage 19 assets across Malaysia and Indonesia
- Initial production starts at 300,000 boe/d, targeting 500,000 boe/d
- The partnership leverages operational synergies and regional expertise
- NewCo supports energy transition with significant gas portfolio
- Closing expected in 2026 after regulatory approvals
In a bold move shaking up Southeast Asia’s energy scene, Italian giant Eni and Malaysia’s state-owned PETRONAS have joined forces to create a $15 billion upstream oil and gas venture. This new company, dubbed NewCo, will consolidate 19 assets across Malaysia and Indonesia, blending technical prowess and regional know-how. Signed at the ADIPEC conference in Abu Dhabi, this deal promises to accelerate project timelines and boost production from 300,000 to 500,000 barrels of oil equivalent per day.
This partnership isn’t just about numbers; it’s a strategic dance aimed at enhancing energy security and supporting the region’s energy transition goals. By pooling resources and expertise, Eni and PETRONAS are setting a new standard for collaboration in mature and emerging basins alike. Over the next five years, NewCo will invest heavily in exploration and development, targeting billions of barrels in reserves and potential.
Join us as we unpack the layers of this landmark deal, exploring how it challenges traditional industry myths about scale and efficiency, and what it means for Southeast Asia’s energy future. Whether you’re a seasoned investor or simply curious about the forces shaping global energy, this story offers fresh insights and actionable perspectives.
Launching NewCo’s Bold Vision
Imagine two energy giants, Eni and PETRONAS, pooling their strengths to rewrite Southeast Asia’s upstream playbook. That’s exactly what happened at ADIPEC 2025, where they signed a binding agreement to form NewCo, a joint venture managing 19 oil and gas assets across Malaysia and Indonesia. Starting with a hefty production of 300,000 barrels of oil equivalent per day, NewCo aims to ramp up to 500,000 boe/d, a leap that promises to energize the region’s supply landscape.
This isn’t just a merger of assets; it’s a fusion of expertise and ambition. Eni brings its satellite model experience from Norway, Angola, and the UK, while PETRONAS contributes deep regional knowledge and a strategic footprint. Together, they’re committing over $15 billion across five years to develop new projects, drill 15 exploration wells, and unlock billions of barrels in reserves. It’s a bold bet on growth and efficiency.
The story here challenges the myth that bigger always means slower or clumsier. NewCo’s structure is designed for financial self-sufficiency and operational agility, proving that scale and nimbleness can coexist. For Southeast Asia, this means faster project delivery, optimized capital use, and a stronger hand in global energy markets.
Harnessing Operational Synergies
Operational synergies often sound like corporate jargon, but in NewCo’s case, they’re the engine driving real value. By merging complementary upstream portfolios, Eni and PETRONAS are not just adding assets—they’re multiplying capabilities. Think of it as combining two puzzle pieces that fit perfectly, unlocking efficiencies in geology, drilling, and project management.
Eni CEO Claudio Descalzi called the partnership a “transformational moment,” highlighting how shared technical know-how accelerates timelines and cuts costs. NewCo’s focus on the Kutei Basin in Indonesia and new Malaysian developments exemplifies this synergy, where existing production assets and fresh initiatives blend seamlessly.
This approach busts the myth that joint ventures dilute control or slow progress. Instead, NewCo’s equal ownership and financial independence empower swift decisions and disciplined capital allocation. The result? A streamlined operator ready to tackle complex projects with precision and speed, setting a new standard for upstream collaboration.
Driving Energy Transition Goals
In today’s energy world, upstream ventures can’t ignore the push toward cleaner, lower-carbon solutions. NewCo’s portfolio, rich in gas assets, positions it as a key player in Southeast Asia’s energy transition. Gas, often seen as the ‘bridge fuel,’ supports decarbonization by replacing dirtier energy sources and enabling more flexible power systems.
PETRONAS’s strategy to strengthen reserves and enhance efficiency aligns perfectly with this vision. By consolidating assets, NewCo can optimize gas production, supporting domestic energy needs and export markets with cleaner energy. This partnership shows that upstream oil and gas companies can lead on transition without sacrificing growth.
This challenges the outdated myth that oil and gas firms are stuck in the past. Instead, NewCo exemplifies how strategic investments and collaboration can drive both production and sustainability, proving that energy security and environmental goals can move hand in hand.
Navigating Regulatory and Stakeholder Terrain
No grand venture sails smoothly without navigating the regulatory seas and stakeholder currents. Eni and PETRONAS have committed to transparent engagement with governments, local communities, employees, and partners as NewCo seeks approvals in Malaysia and Indonesia. This openness is crucial for building trust and ensuring smooth integration.
The deal’s closing, expected in 2026, hinges on these approvals, reflecting the complex balance between ambition and compliance. It’s a reminder that big energy projects must respect local contexts and governance frameworks to succeed.
This approach dispels the myth that large-scale energy deals happen behind closed doors or steamroll local interests. Instead, NewCo’s strategy highlights how collaboration extends beyond companies to include all stakeholders, fostering sustainable development and shared benefits.
Shaping Southeast Asia’s Energy Future
NewCo isn’t just a company; it’s a potential game-changer for Southeast Asia’s upstream oil and gas scene. With plans to develop 8 new projects and explore 15 wells, it’s poised to unlock around 3 billion barrels of discovered reserves and tap into 10 billion barrels of exploration potential. That’s a massive resource base ready to fuel growth.
This venture exemplifies a broader industry trend toward regional consolidation and strategic partnerships, especially in mature basins where efficiency and scale matter most. By combining capital discipline with integrated development strategies, NewCo aims to be a key regional player for the next decade.
For investors and policymakers alike, this signals a shift toward smarter, collaborative energy development that balances production needs with transition goals. The story of NewCo is one of ambition, partnership, and a shared vision for a resilient energy future.
Long Story Short
The Eni-PETRONAS $15 billion upstream venture is more than a merger; it’s a strategic leap toward a more integrated and efficient energy future in Southeast Asia. By combining complementary assets and expertise, NewCo is positioned to unlock vast reserves and accelerate production growth, all while aligning with broader energy transition ambitions. This partnership exemplifies how collaboration can overcome the challenges of mature basins and emerging frontiers. For investors and industry watchers, NewCo’s model offers a blueprint for balancing scale with agility, proving that regional consolidation can drive both economic value and environmental responsibility. The commitment to transparent stakeholder engagement and regulatory compliance further underscores the venture’s sustainable approach. As NewCo moves toward its 2026 launch, the energy sector should watch closely. This joint venture not only reshapes Malaysia and Indonesia’s upstream landscape but also signals a shift in how global energy players navigate complexity and change. The relief of a funded, forward-looking energy strategy is palpable—and it’s a story worth following.