Companies sign framework agreement for 50:50 joint venture that will oversee assets in Malaysia and Indonesia

Italian energy giant Eni and Malaysian behemoth Petronas on Tuesday signed a new framework agreement that sets the basis for the creation of the new, jointly participated company that will oversee assets in Indonesia and Malaysia.

The JV company in the medium term will deliver sustainable production of 500,000 barrels of oil equivalent per day — mainly gas — and it will combine approximately 3 billion barrels of oil equivalent reserves with an additional 10 billion boe of potential exploration upside.

“The new company will have a strong regional impact on gas production, bringing additional energy, infrastructures and employment for the benefit of both Indonesia and Malaysia,” said Eni chief executive, Claudio Descalzi.

It will also have the opportunity to further build on a combined portfolio of more than 50 trillion cubic feet of additional, low risk exploration potential.