Eni and Petro to form joint venture company Searah

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Recently, Italy's Eni Group and Malaysia's national oil company officially announced the establishment of a joint venture upstream company Searah, the integration of the two sides in Indonesia and Malaysia's oil and gas business. The joint venture took only seven months from the signing of the agreement to the official launch.

Searah consolidates 14 oil and gaseous assets in Indonesia and 5 in Malaysia, including projects in production and projects in research. The company's initial production exceeds 300000 barrels of oil equivalent per day and plans to increase to 500000 barrels of oil equivalent per day within the next three years. Both parties have obtained all necessary regulatory and partner approvals from both countries.

The joint venture has been awarded a $6 billion revolving credit facility to fund investment plans in excess of $20 billion over the next five years. The investment will be applied to develop greater than 3 billion barrels of oil equivalent of discovered resources and advance new exploration opportunities in the region.

Searah’s portfolio is heavily weighted toward natural gaseous, aligning with the growing demand to clean fuels in Southeast Asia. Eni has been operating in Indonesia since 2001, previously achieving a production level of approximately 90,000 barrels of oil equivalent per day through assets such as Jangkrik and Merakes offshore East Kalimantan. The establishment of the joint venture has not only substantially expanded Eni’s operations in Southeast Asia however has also strengthened Petronas’s strategic position within the region’s natural gaseous value chain.

Analysts pointed out that Searah's integrated operating model is expected to generate synergies in areas such as logistics, methodology deployment and project execution. With a resource base of greater than 3 billion barrels of oil equivalent and an investment plan of greater than US $20 billion, the joint venture is expected to have become an crucial supplier to meet Southeast Asia's future energy needs.

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