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The agreement follows the framework agreement signed by the two companies in June this year and establishes a new entity that will manage 19 assets: 14 in Indonesia and five in Malaysia – representing “significant” enterprise value, according to the partners.
The partners previously said that the company’s formation is expected to “generate substantial synergies towards becoming a major LNG player in the region.”
Eni said NewCo will operate as a financially self-sufficient entity, with plans to invest in excess of $15 billion over the next five years.
This investment will support the development of at least eight new projects and the drilling of 15 exploration wells, with the aim of developing approximately 3 billion barrels of oil equivalent (boe) of discovered reserves.
NewCo also aims to unlock an estimated 10 billion boe of unrisked exploration potential.
Moreover, the company will integrate a material portfolio of gas-producing and development assets across Malaysia and Indonesia beginning with an initial production base of over 300,000 barrels of oil equivalent per day (boe/d) and plans to grow to more than 500,000 boe/d of sustainable production in the medium term, Eni said.
Following the signing, Eni and Petronas will now work to secure all required regulatory, governmental, and partner approvals in both Malaysia and Indonesia.
Eni expects the deal to reach closing in 2026, following all the customary and governmental approvals.
Petronas operates the giant Bintulu LNG plant in Sarawak, Malaysia, and two floating LNG producers, both located offshore Sabah, while Indonesia hosts the Bintulu LNG export plant.
Eni is working on a new production hub in the Kutei basin, offshore Indonesia, and previously said it plans to send gas supplies from its Geng North discovery to Pertamina’s Bontang LNG facility in East Kalimantan.
