Eni and Petronas plan to create ‘major’ LNG player in Malaysia, Indonesia

Italy’s Eni and Malaysia’s Petronas plan to establish a joint venture company to oversee selected upstream assets in Indonesia and Malaysia.

The two firms announced on Thursday an exclusive memorandum of understanding to progress detailed discussions on establishing the JV.

According to the duo, the company’s formation is expected to “generate substantial synergies towards becoming a major LNG player in the region, while delivering in the medium term a sustainable 500 kboepd production.”

The JV will combine approximately 3 billion barrels of oil equivalent (boe) of reserves with an additional 10 billion boe of potential exploration upside.

Moreover, the joint venture will focus on investing in new gas development projects, supporting the increasing regional domestic gas demand.

Eni and Petronas also plan to develop a “comprehensive” business plan to capture future opportunities in exploration, development, and potential portfolio growth.

Under this arrangement, the assets will retain their current operational structure, while the new company will leverage the competencies and financial capabilities of both Eni and Ppetronas and is expected to raise external financing on a standalone basis.

Both Eni and Petronas have informed the Indonesian and Malaysian governments of their intentions.

Any final transaction will be subject to relevant governmental, regulatory, and partner approvals, the two firms said.

Petronas has 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.

Most Popular

Cheniere to start site preparation for two more Corpus Christi LNG trains

US LNG exporting giant Cheniere is seeking approval from the US FERC to start site preparation activities for two more midscale trains at its Corpus Christi LNG plant in Texas.

Amigo LNG, Sahara seal 20-year SPA

Amigo LNG, a unit of LNG Alliance, has signed a 20-year sales and purchase agreement with Sahara Group to supply the latter with liquefied natural gas from its planned 7.8 mtpa LNG export plant in Mexico.

Woodside names Sarah Bairstow as Louisiana LNG head

Australian LNG player Woodside has appointed Sarah Bairstow to lead its Louisiana LNG project.

More News Like This

Italy’s Eni to join YPF’s Argentina LNG project

Eni's CEO, Claudio Descalzi, and the CEO of YPF, Horacio Marín, signed the memorandum on Monday to evaluate Eni's...

Mozambique approves Eni’s Coral Norte FLNG project

Italy's Eni has received approval from the government of Mozambique for its second FLNG project in Mozambique, Coral Norte (Coral North).

Eni’s Mozambique FLNG ships 100th cargo

Eni’s 3.4 mtpa Coral Sul FLNG, located offshore Mozambique, has shipped its 100th cargo of liquefied natural gas (LNG) since 2022.

Petronas to supply LNG to PetroVietnam Gas

Malaysian energy giant Petronas will supply liquefied natural gas (LNG) to PetroVietnam Gas, a unit of state-owned PetroVietnam, next month. The two firms will also look into the possibility of signing long-term LNG contracts.