Eni SpA (E.US) and Malaysian energy giant Petronas have signed a binding agreement to consolidate their upstream oil and gas assets in Indonesia and Malaysia through a newly established joint venture, NewCo. The entity will manage 19 assets—14 in Indonesia and 5 in Malaysia—with plans to invest over $15 billion in the next five years to develop approximately 3 billion barrels of proven reserves and explore an additional 10 billion barrels.

This move aligns with Eni’s "satellite" strategy, under which the Italian energy major has created multiple spin-offs focused on specific operations, supporting their growth toward independence. A similar approach was seen in Eni’s partnership with BP in Angola, forming the Azule Energy joint venture.

NewCo will integrate both companies’ natural gas production and development portfolios in Malaysia and Indonesia, starting with an initial production base exceeding 300,000 barrels of oil equivalent per day (boe/d). The venture aims to boost output to over 500,000 boe/d in the medium term. Eni emphasized that NewCo will operate as a financially self-sustaining entity.