Hydrocarbons

Eni: 'Searah' set up, JV with Petronas in South-East Asia

Combines Indonesia and Malaysia activities. Target 500,000 boe/g

by Radiocor Editorial

8 June 2026

3' min read

Translated by AI

Versione italiana

3' min read

Translated by AI

Versione italiana

Eni and Petronas announce that Searah, the new 50/50 independent joint venture bringing together key assets in Indonesia and Malaysia, has been officially established seven months after the signing of the investment agreement on 3 November 2025 and 16 months after the memorandum of understanding announced in February 2025.

Searah, recalls a note, brings together complementary regional portfolios, skills and experience with the aim of ensuring long-term value creation and operational excellence in Indonesia and Malaysia. With a portfolio of 19 gas production and development assets - 14 in Indonesia and 5 in Malaysia - Searah will start from an initial production of over 300,000 boe/day (Barrel of Oil Equivalent), with a target to exceed 500,000 boe/day of sustainable production within the next three years. All necessary regulatory, government and partner approvals have been obtained in both Malaysia and Indonesia, and all conditions precedent have been met, the note adds.

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"Searah reflects our well-established satellite strategy to create focused, quality businesses that combine scale, efficiency and growth, driven by our excellence in exploration and project execution, as well as our continued focus on technology and innovation. Searah is a strong new entity in Southeast Asia - the first and largest of its kind in the region - combining our experience with that of Petronas to support the development of energy resources in Indonesia and Malaysia, with a strong commitment to environmental protection and local growth," said Claudio Descalzi, Eni's CEO.

For Tengku Muhammad Taufik, chairman and chief executive officer of the Petronas Group, "The establishment of Searah is in line with Petronas' growing focus on greater discipline in resource development, coupled with a more agile deployment of capital and a greater emphasis on sustainable value creation across the entire gas value chain. By leveraging the complementary portfolios and capabilities of Petronas and Eni, Searah aspires to achieve the operational depth, financial resilience and growth capacity of the two partners to reliably and responsibly address the region's growing energy needs while contributing to long-term supply security in Indonesia and Malaysia."

$6 billion credit line

The note indicates that a US$6 billion revolving credit facility has been successfully obtained, reflecting the strong confidence of the financial markets in the financing of Searah's growth plans, which include investments of over US$20 billion over the next five years. These investments will support the development of more than 3 billion barrels of oil equivalent (boe) of discovered resources and enable the exploitation of an additional exploration potential of several billion boe.

Eni and Petronas, the note emphasises, share Searah's environmental and sustainability goals and believe the collaboration will strengthen operations while supporting economic development and local opportunities in both countries. Searah's independent and integrated operating model will also generate significant synergies, particularly in logistics and technology.

The Searah team draws on the vast experience of both companies. All personnel from Eni Indonesia and Petronas Indonesia have joined Searah, in parallel with the establishment of Searah Malaysia Sdn Bhd, a dedicated entity set up to manage operations in Malaysia.

Investments in reservoirs

The launch of Searah follows Eni's recent final investment decisions (FID) on the Gendalo and Gandang (South Hub) fields and the Geng North and Gehem (North Hub) fields, announced in March. These projects contain almost 283 bcm of gas initially in place (GIIP) and about 550 million barrels of associated condensate, with production expected to start in 2028 and reach a plateau of 56.5 million cubic metres of gas and 90,000 bpd of condensate by 2029. Eni also recently announced the giant Geliga-1 gas discovery in the Ganal block in the Kutei Basin, estimated at around 140 bcm of gas and 300 million barrels of condensate in place. The well proved an excellent field quality, capable of producing about 5.7 million cubic metres of gas and 10,000 bpd of condensate. The establishment of Searah supports the deployment of capital and resources required to achieve a near-term production target of 500,000 boe/d while promoting further development opportunities from the success of the Geliga exploration well.

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Eni has been present in Indonesia since 2001 and currently holds a diversified upstream portfolio that includes exploration, development and production activities. Net production stands at around 90,000 boe/day, mainly from the offshore Jangkrik and Merakes fields off the East Kalimantan coast.

The establishment of Searah marks a new chapter in Eni and Petronas' long-standing presence and commitment in the region, the note concludes.