Eni and PETRONAS announced the official formation of Searah, a new joint venture 50% owned by both companies that will integrate strategic assets from Indonesia and Malaysia. The creation of the company marks the culmination of a process initiated in February 2025 with the signing of a Memorandum of Understanding and subsequently consolidated through an Investment Agreement signed in November of the same year.
The new company was established with the objective of strengthening regional energy security and accelerating the development of gas resources in two of Southeast Asia’s most significant markets.
Searah is established as a regional-scale energy platform
Searah begins operations with a portfolio consisting of 19 gas production and development assets, 14 of which are located in Indonesia and five in Malaysia. The company starts with production exceeding 300,000 barrels of oil equivalent per day and aims to surpass 500,000 barrels of oil equivalent per day within three years.
Furthermore, the company is established after receiving all required regulatory, governmental, and partner authorizations in both countries, allowing for the immediate commencement of its operations.
Claudio Descalzi, CEO of Eni, noted that Searah represents an evolution of the company’s business strategy based on creating specialized businesses capable of combining growth, operational efficiency, and technological innovation.
According to the executive, the new entity will drive the development of energy resources in Indonesia and Malaysia while maintaining a commitment to environmental protection and local economic growth.
Investments exceeding 20 billion dollars
On the other hand, Searah begins its activity backed by a $6 billion revolving credit facility recently obtained in international financial markets.
This financial backing will enable the execution of an investment portfolio exceeding $20 billion over the next five years. The funds will be allocated to the development of more than 3 billion barrels of oil equivalent in already discovered resources and the expansion of new exploration campaigns.
Tengku Muhammad Taufik, President and Group CEO of PETRONAS, highlighted that the creation of the company responds to a strategy focused on improving discipline in resource development, optimizing capital allocation, and strengthening value generation throughout the gas chain.
Boosting major gas projects in the region
Likewise, the launch of Searah comes at a key moment for the growth of Eni’s exploratory activity in Indonesia.
Recently, the company announced final investment decisions for the Gendalo and Gandang developments in the South Hub and for Geng North and Gehem in the North Hub. These projects concentrate nearly 10 trillion cubic feet of gas initially in place and approximately 550 million barrels of associated condensate.
Forecasts indicate that production will begin in 2028 and reach around 2 billion cubic feet of gas per day and 90,000 barrels of condensate per day by 2029.
Added to this is the Geliga-1 gas discovery in the Ganal block of the Kutei Basin, considered one of the most significant findings recently announced by the company. Preliminary estimates place its resources at approximately 5 trillion cubic feet of gas and 300 million barrels of condensate.
Sustainability and local growth as strategic pillars
The two companies emphasized that Searah will operate under aligned environmental objectives and with a strategy focused on long-term sustainability.
In addition to strengthening regional energy production, the new organization will seek to generate economic opportunities and specialized employment in Indonesia and Malaysia. The integrated operating model will allow for the leveraging of synergies in logistics, technology, and asset management, improving operational efficiency.
With the incorporation of Eni Indonesia and PETRONAS Indonesia personnel into the new structure and the creation of Searah Malaysia Sdn Bhd to manage Malaysian assets, the company begins a new phase aimed at becoming one of the leading energy players in Southeast Asia.
Source: Eni
Photo: Searah