Eni, PETRONAS Sign Agreement To Form Joint Upstream Company

(MENAFN- Trend News Agency) BAKU, Azerbaijan, June 18. Eni and PETRONAS have signed a Framework Agreement in Kuala Lumpur outlining the creation of a new jointly held company to manage upstream oil and gas assets in Indonesia and Malaysia, Trend reports.

The agreement builds on a previously signed Memorandum of Understanding and includes the key terms of the future Shareholder Agreement.

Under the agreement, both companies will contribute assets valued on a 50:50 basis. The new company will be financially self-sufficient and will operate within Eni's satellite model framework, following a structure similar to its partnerships in Norway (Var Energi) and Angola (Azule Energy).

The agreement confirms alignment between Eni and PETRONAS on asset valuation and sets the stage for final agreements, which are expected to be signed by the fourth quarter of 2025, following the completion of financial due diligence.

The new entity will have a combined reserve base of approximately 3 billion barrels of oil equivalent (boe), with additional exploration potential estimated at 10 billion boe. It is expected to reach a medium-term production level of 500,000 barrels of oil equivalent per day, primarily consisting of natural gas.

Both companies have notified the relevant authorities in Indonesia and Malaysia of the progress of the transaction. The completion of the deal remains subject to government, regulatory, and partner approvals.

MENAFN18062025000187011040ID1109688323