Italy's Eni and Malaysia's Petronas have established Searah, a 50-50 joint venture combining key energy businesses across Indonesia and Malaysia, the two companies said on Monday.
The move is part of Eni's so called 'satellite strategy' to spin off specific assets and develop them separately with the help of a partner, Reuters reported.
The new company will start from an initial production base of over 300,000 barrels of oil equivalent per day (boe/d), aiming to exceed 500,000 boe/d of sustainable production within the next three years, a joint statement said.
It will hold a portfolio of 19 gas-producing and development assets, 14 in Indonesia and five in Malaysia.
"Searah is a strong new entity in Southeast Asia, 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," Eni CEO Claudio Descalzi said.
