Eni has signed a Memorandum of Understanding (MoU) with Petronas to progress discussions on establishing a joint venture holding company to oversee selected upstream assets in Indonesia and Malaysia.

This venture aims to boost growth opportunities in Indonesia and Malaysia, positioning both companies as key players in the LNG in the region while delivering in the medium term a sustainable production of 500,000 barrels of oil equivalent per day (kboe/d), Eni said.

The new company will also  combine approximately 3 billion barrels of oil equivalent (boe) in reserves, with an additional 10 billion boe in exploration potential.

It will prioritize investments in new gas development projects, aligning with both companies’ commitments to energy transition and addressing the increasing regional demand for domestic gas.

A comprehensive business plan will be developed to capture future opportunities in exploration, development, and potential portfolio growth, said Eni.