Petronas, Eni Form Joint Venture to Combine Assets

By Ying Xian Wong

KUALA LUMPUR, Malaysia--Malaysia's state energy firm Petronas and Italy's Eni have formed an equal joint venture with an anticipated $20 billion investment pipeline over the next five years.

The new entity, Searah, combines selected assets in Malaysia and Indonesia and will have an initial production of about 300,000 barrels of oil equivalent a day, according to a statement on Monday.

Searah holds 19 gas-producing and development assets, comprising 14 in Indonesia and five in Malaysia, and aims to raise production to more than 500,000 BOE a day within the next three years.

The venture is supported by a $6 billion revolving credit facility. The investments are expected to support the development of more than 3 billion BOE of discovered resources and unlock additional exploration opportunities.

The venture will provide a more focused platform to improve operational performance and accelerate value creation, boosting scale and execution across the partners' Malaysian and Indonesian assets, according to Petronas Chief Executive Tengku Muhammad Taufik.

Eni Chief Executive Claudio Descalzi described Searah as the first and largest venture of its kind in Southeast Asia, combining the expertise of both companies to support the development of regional energy resources.

The venture follows a memorandum of understanding signed in February 2025 and an investment agreement announced in November 2025. All required regulatory, government and partner approvals have been obtained.

Searah will operate as an independent entity focused on developing energy resources while supporting long-term sustainable energy development across Malaysia and Indonesia.

Write to Ying Xian Wong at yingxian.wong@wsj.com

(END) Dow Jones Newswires

June 08, 2026 06:04 ET (10:04 GMT)