Eni, Petronas Form Joint Venture to Combine Oil and Gas Assets

Italy’s Eni and Malaysia’s state-owned energy company Petronas announced on Monday that they have signed a binding agreement to merge their upstream oil and gas assets in Indonesia and Malaysia into a jointly owned company.

The new entity, called NewCo, will manage 19 assets — 14 in Indonesia and five in Malaysia. Over the next five years, the partners plan to invest more than $15 billion to develop nearly 3 billion barrels of discovered reserves and explore an additional 10 billion barrels.

The agreement was signed in Abu Dhabi during the ADIPEC energy conference.