Eni and Petronas signed an exclusive memorandum of understanding (MoU) to establish a joint venture holding company to oversee selected upstream assets in Indonesia and Malaysia.
The companies aim to create opportunities for growth while generating "synergies towards becoming a major LNG player in the region," the companies said in a joint release Feb. 27. The MoU will allow the companies to deliver in the medium term a sustainable production of 500,000 boe/d. The JV will combine about 3 billion boe of reserves with an additional 10 billion boe of potential exploration upside.
Under the arrangement, the assets will retain their current operational structure, but the joint venture will focus on investing in new gas development projects, the companies said, adding that a comprehensive business plan will be developed to capture future opportunities in exploration, development, and potential portfolio growth.
Any final transaction will be subject to relevant governmental, regulatory, and partner approvals.
