PETALING JAYA: Malaysia’s state oil giant Petroliam Nasional Bhd (Petronas) and Italy’s energy major Eni SpA (Eni) have launched Searah, a 50:50 joint venture combining selected assets across Malaysia and Indonesia, in a move aimed at strengthening portfolio value, supporting sustainable energy development and enhancing regional energy security.
In a statement, the companies said Searah will operate as an independent entity, providing a more focused platform to enhance operational performance and accelerate value creation, in line with Petronas’ ongoing efforts to optimise its portfolio and pursue new growth avenues.
By consolidating selected assets across both countries, Petronas and Eni said they are leveraging synergies in portfolios, technical expertise and regional insights, enabling greater scale, sharper execution and stronger value delivery.
Petronas president and group CEO Tan Sri Tengku Muhammad Taufik said the joint venture aligns with the group’s intensified focus on disciplined resource development, more agile capital deployment and sustained value creation across the gas value chain.
“Leveraging the complementary portfolios and capabilities of both Petronas and Eni, Searah is envisaged to bring the operational depth, financial resilience and growth capacity of both partners in addressing the region’s growing energy needs reliably and responsibly, while contributing to long-term supply security in Indonesia and Malaysia,” he said.
Eni CEO Claudio Descalzi said Searah reflects the group’s “satellite strategy” of building focused, high-quality businesses that combine scale, efficiency and growth, supported by strengths in exploration, project execution, technology and innovation.
“Searah is a strong new entity in Southeast Asia — the first and largest of its kind in the region — combining our expertise 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,” he said.
The establishment follows a memorandum of understanding signed in February 2025 and a subsequent investment agreement inked on Nov 3, 2025, with all required regulatory, governmental and partner approvals secured.
Searah will hold a portfolio of 19 gas-producing and development assets, comprising 14 in Indonesia and five in Malaysia. It will start with an initial production base of about 300,000 barrels of oil equivalent per day (boe/d), with a target of exceeding 500,000 boe/d within three years.
The joint venture is backed by a US$6 billion revolving credit facility and an anticipated investment pipeline of US$20 billion (RM81.4 billion) over the next five years, subject to regulatory approvals.
These investments are expected to support the development of more than three billion barrels of oil equivalent of discovered resources while unlocking additional exploration potential.
Both companies said Searah will be underpinned by aligned sustainability ambitions, focusing on responsible operations, environmental stewardship and the creation of long-term value and opportunities in Malaysia and Indonesia.
