Malaysia’s state-owned energy corporation Petronas and Italy’s Eni have officially completed the establishment of the Searah joint venture. As a result, the companies have combined their key oil and gas assets in Indonesia and Malaysia.
Searah’s portfolio includes 19 producing and development assets, including 14 projects in Indonesia and five in Malaysia. At the initial stage, the company will produce more than 300,000 barrels of oil equivalent per day. Over the next three years, this figure is expected to nearly double.
To support Searah’s development program, the company has already secured a $6 billion revolving credit facility. According to the Italian company, total investment in the new venture’s projects will exceed $20 billion over the next five years. The investments will be directed toward the development of more than 3 billion barrels of oil equivalent in discovered resources, as well as further exploration activities across the region.
The creation of the joint venture provides an opportunity to strengthen energy cooperation between Malaysia and Indonesia. It is expected to become an important factor in the development of Southeast Asia’s gas industry.
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