PETRONAS & Eni Launch Searah JV for Southeast Asia Gas

Kuala Lumpur and Rome — PETRONAS, Malaysia’s national oil and gas company, and Italian energy major Eni have officially formalized their 50-50 joint venture, named Searah. This significant strategic move involves merging selected oil and gas assets across their existing operations in Malaysia and Indonesia, with the core objective of substantially bolstering regional energy development and increasing the supply of natural gas in the burgeoning Southeast Asian market.

The establishment of Searah marks a pivotal step for both energy giants in consolidating their presence and optimizing their portfolios within the region. The new entity commences operations with a robust foundation, holding interests in 19 producing and development assets. This comprehensive portfolio is strategically divided, with 14 assets located within Indonesia and an additional five situated in Malaysia, creating a strong and integrated regional footprint.

Ambitious Production Targets and Growth Strategy

Searah’s combined current production from these newly integrated assets stands at approximately 300,000 barrels of oil equivalent per day (boe/d). The joint venture has outlined a highly ambitious growth trajectory, targeting an increase to exceed 500,000 boe/d within the next three years, clearly demonstrating a strong commitment to significantly expanding its operational output and market share.

This aggressive production target is underpinned by a focused strategy aimed at maximizing efficiency and accelerating development across its newly consolidated asset base. Searah intends to leverage the combined technological expertise, operational experience, and financial strengths of both PETRONAS and Eni to achieve these ambitious production and development goals effectively.

Substantial Financial Commitments and Investment Outlook

To facilitate its extensive growth and development plans, Searah has successfully secured a substantial $6 billion revolving credit facility. This significant financial backing provides the necessary liquidity and capital to drive its initial operational phases, fund ongoing projects, and support future expansion initiatives.

Furthermore, the joint venture anticipates evaluating significant investments totaling up to $20 billion over the next five years. These prospective investments, which will be subject to necessary regulatory approvals, are earmarked for both the development of existing discovered resources and the proactive pursuit of new exploration opportunities across the region, reflecting a long-term and strategic commitment to Southeast Asia’s energy sector.

The portfolio under Searah’s management encompasses an impressive endowment of over 3 billion barrels of oil equivalent in discovered resources. This substantial resource base is strategically positioned to serve as a dedicated platform for the accelerated development of critical energy assets and to play a crucial role in enhancing regional energy security across Southeast Asia, addressing the increasing demand for reliable energy sources.

Strategic Focus and Leadership Commentary

Searah’s operational strategy is meticulously designed to concentrate on two primary pillars: the efficient and optimized development of its existing oil and gas resources, and the proactive exploration of new opportunities throughout the dynamic and energy-hungry Southeast Asian region. This dual approach is considered critical for sustaining long-term growth, ensuring supply stability, and meeting the future energy demands of the area.

The formal establishment of Searah follows an initial memorandum of understanding that was outlined in February 2025. Since that time, all necessary regulatory and partner approvals have been successfully secured from relevant authorities and partners, clearing the path for the joint venture’s official commencement and full operational rollout.

Both Tengku Muhammad Taufik, President and Group CEO of PETRONAS, and Claudio Descalzi, CEO of Eni, have prominently underscored the strategic importance and potential of this collaboration. They emphasized that Searah is uniquely positioned to effectively leverage the companies’ combined capabilities and extensive experience to address the rapidly growing energy demand prevalent across Southeast Asia, thereby reinforcing the venture’s pivotal role in the region’s energy future and transition.