Kuala Lumpur (VNA) – The governments of Malaysia and Indonesia have approved the transfer of ownership of oil and gas assets to a new joint venture between Malaysia’s national oil company Petronas and Italy’s Eni, according to The Edge on May 21.
Speaking on the sidelines of the Indonesian Petroleum Association Convention and Exhibition (IPA Convex) 2026 on May 21, Yuzaini Md Yusof, Petronas’ country head for Indonesia, said Petronas and Eni signed an agreement in November 2025 to establish a joint venture named SEARAH to manage 19 assets, including 14 in Indonesia and five in Malaysia.
The two governments have now approved the transfer of production-sharing contracts for these assets from Petronas and Eni to SEARAH. Following the approvals, the companies are completing internal procedures to finalise the transaction. The new venture is expected to commence operations on July 1.
According to Eni, the joint venture plans to invest more than 15 billion USD over the next five years. The investment will support the development of at least eight new projects and the drilling of 15 exploration wells, targeting the development of around 3 billion barrels of oil equivalent (boe) in discovered resources.
The new company will combine gas production and development assets across Malaysia and Indonesia, with an initial production capacity of more than 300,000 barrels of oil equivalent per day (boepd). Output is expected to increase to over 500,000 boepd in the medium term.
The venture forms part of Eni’s satellite-model strategy, following similar projects such as Vår Energi in Norway, Azule Energy in Angola, and Ithaca Energy in the UK./.
