A recent report has unveiled a new partnership between Malaysian oil and gas corporation Petronas with Eni, an oil company based in Italy.
The joint-venture will see the two businesses combine the upstream assets they hold in Indonesia and Malaysia, representing a substantial investment. In the next five years, funds worth more than $15 billion will be supplied to accelerate development.
Under the new agreement, the joint venture will trade as a financially self-sufficient operation. Temporarily called “NewCo”, the firm will be launched in 2026 and gives Eni and Petronas equal ownership.
CEO and President for Petronas, Tan Sri Tengku Muhammad Taufik, commented that the landmark partnership between Eni and Petronas aims to set a new baseline for cost-effective, responsible and efficient upstream development.
The planned joint venture arrives at a time when the international oil market is struggling with decreased demand and an excessive abundance of supply, which is putting pressure on prices. So far in 2025, crude oil’s global benchmark has declined by over 13 per cent.
Both Petronas and Eni have now informed the Malaysian and Indonesian governments about the deal’s progress, but the final transaction will still be subject to required approvals.
Set up in 1974, Petronas is a state-owned business responsible for the development of Malaysia’s hydrocarbon resources. Its integrated model involves the production and marketing of petrochemicals, petroleum and natural gas, but the multinational also provides high-quality products like heat transfer fluid (HTF) and hydraulic oil through Petronas Lubricants International.
