Eni and Petronas combine Indonesian and Malaysian assets in joint venture

Eni, the Italian energy company, and Petronas, Malaysia's state-owned energy company announced on Monday that they had signed an agreement for a joint venture to combine their upstream oil assets and gas assets located in Indonesia and Malaysia.

NewCo will manage 19 assets in Indonesia and Malaysia. It plans to invest $15 billion over the next five-year period to develop and explore about 3 billion barrels in discovered reserves.

The agreement was signed in Abu Dhabi at ADIPEC.

This move is part Eni's "satellite strategy" under which it has created several spinoffs around specific businesses, and supported their growth so that they become independent.

Eni and BP created their joint venture Azule Energy in Angola, which was a similar deal.

The NewCo with Petronas is a joint venture that will combine a portfolio of assets in Malaysia for gas production and development.

Indonesia will begin with a production base of over 300,000 barrels equivalent of oil per day (boe/d).

The company plans to increase production to over 500,000 boe/d in the medium-term.

Eni announced in a press release that it will be a self-sufficient company. Yousef SABA in Dubai and Francesca Landini, in Milan. Tala Ramadan & Francesca Landini wrote the article. Kim Coghill & Louise Heavens edited it.

(source: Reuters)