With 2026 revealing a new era of upstream development across several markets, a new partnership between Eni and Petronas has enabled the Asian market to reach a pivotal point in 2026. Indonesia and Malaysia will see a slate of new upstream developments this year, thanks in no small part to the new independent company established by the Italian energy major and the state-owned Petronas. The Asian energy market has been growing at an unexpected pace in recent years and requires significant investments to get the most out of the energy production in the region.
The Asian energy market: an exemplar of growth in the international sector
The Asian energy market has grown substantially over the past few years and has become one of the largest markets in the world due to the sheer population density in the region.
Italian energy major Eni and the state-owned Petroliam Nasional Berhad (PETRONAS) have agreed to establish a new independent company under equal ownership that will play a vital role in meeting energy demand in the Asian market.
The newly created Newco will combine the pair of companies’ assets and enable huge investments in new developments in Indonesia and Malaysia in 2026. The signing of the agreement was made at the global energy event ADIPEC, in the presence of PETRONAS President and Group CEO, Tengku Muhammad Taufik, and Eni CEO, Claudio Descalzi, who praised the new company’s potential in advancing energy developments in the region.
The creation of NewCo will enable Eni to accelerate project development cycles and optimize capital allocation, and also achieve operational synergies in exploration, production, and asset management, while capturing growth from both mature producing fields and high-opportunity exploration areas. – Eni website statement
Can the newly created independent company provide new opportunities for the Asian energy market?
NewCo will see Eni and Petronas combine their assets to establish a financially self-sufficient company, with the companies planning to invest in excess of $15 billion over the next five years to develop their projects in Malaysia and Indonesia.
The investment is aimed at supporting the development of up to eight new projects in Malaysia and Indonesia, which will add approximately 3 billion barrels of oil equivalent (boe) of discovered reserves.
The creation of the new independent company will enable Eni to accelerate notable project development assets in the region and will play a vital role in advancing energy security in a growing market. With recent market data revealing that Asian refiners may be in for a tough year ahead, NewCO will provide some much-needed cash injection into the Asian market in 2026.
“This agreement is a transformational moment for Eni. We have joined forces with PETRONAS to operate assets across Indonesia and Malaysia, generating synergies across assets, expertise and financial capabilities. By leveraging existing production assets and developing material initiatives in both the Kutei Basin and in Malaysia, we expect to deliver over 500,000 barrels of oil equivalent per day in the mid-term. This opportunity will deliver impressive value creation for Eni, PETRONAS, Indonesia and Malaysia, enabled by our exceptional exploration skills and track record of delivering disciplined, fast track projects.” – Eni CEO Claudio Descalzi
Demand for energy resources in the Asian market is growing this year
As the United States dominates the global energy market at the moment, several experts have noted that demand for energy in the emerging Asian markets has reached a tipping point in 2026. Malaysia and Indonesia will be aiming to leverage the substantial expertise of the two companies to enable a new era of upstream production in the Asian market. Eni and Petronas have created NewCo at just the right time, it would seem.
