Italian energy giant ENI SpA signed an agreement with Petronas on Monday, November 3, 2025 to establish a new joint venture company called NewCo that will oversee 19 upstream oil and gas assets owned by both companies − 14 in Indonesia and five in Malaysia. 

The partnership follows a framework agreement signed on June 17, 2025, marking a major step toward integrating operations in Southeast Asia.

ENI said NewCo will be a financially independent entity with an investment plan worth US$15 billion (Rp250.4 trillion) over the next five years. The capital will support the development of at least eight new projects and the drilling of 15 exploration wells, targeting approximately 3 billion barrels of oil equivalent (boe) in discovered reserves.

“We have collaborated with Petronas in operating assets across Indonesia and Malaysia, creating synergies in assets, expertise, and financial capabilities,” ENI CEO Claudio Descalzi said as quoted in a statement on Tuesday, November 4, 2025.

NewCo also aims to tap into 10 billion boe in untapped exploration potential by combining gas assets and development portfolios across Malaysia and Indonesia. The venture will start with an initial production base of over 300,000 boe per day, with plans to increase it to over 500,000 boe per day in the medium term.

“By leveraging existing production assets and developing strategic initiatives in the Kutai and Malaysia basins, we expect to reach over 500,000 boe per day in sustainable production,” Descalzi said.

Following the signing, both companies will seek the necessary regulatory, governmental, and partner approvals in Malaysia and Indonesia, with completion expected by 2026.

ENI, which has been operating in Indonesia since 2001, currently produces around 80,000 boe per day from the Jangkrik and Merakes gas fields in East Kalimantan. It also manages Geng North in the North Ganal block, as well as Gehem in the Ganal block and the Rapak block − all part of the North Hub Development Project in the Makassar Strait. Geng North is one of ENI’s giant discoveries, with an estimated 5.3 trillion cubic feet (TCF) of gas reserves.