Italian energy major Eni S.p.A. E has signed a major Framework Agreement with Malaysian state energy giant PETRONAS to merge their upstream oil and gas assets in Indonesia and Malaysia, paving the way for a new jointly operated company. The deal was formalized on June 17 in Kuala Lumpur and follows an earlier Memorandum of Understanding between the two parties.
E-PETRONAS JV to Mirror Eni's Satellite Model Success
The proposed joint venture (JV) will be equally owned, with both companies agreeing to a 50:50 valuation of the contributed assets. The new entity will be financially self-sufficient and strategically aligned with Eni’s proven satellite model — an approach the Italian energy major had previously used to launch successful ventures like Var Energi in Norway and Azule Energy in Angola.
This JV is expected to combine about 3 billion barrels of oil equivalent (boe) in reserves with a production outlook of 500,000 barrels of oil equivalent per day (boepd) — primarily natural gas. Furthermore, it boasts an additional exploration potential of over 10 billion boe and a combined portfolio of more than 50 trillion cubic feet (TCF) of low-risk gas prospects.
Descalzi: A Transformational Move for Southeast Asia
Eni CEO Claudio Descalzi described the deal as a milestone that brings together assets, expertise and financial strength. He stressed its transformational impact, noting that it will support energy security, infrastructure growth and job creation in both Indonesia and Malaysia.
The companies have informed both governments of their progress, and the final agreement, expected by fourth-quarter 2025, is subject to financial due diligence and necessary regulatory and partner approvals.
A Regional Energy Powerhouse in the Making
Once finalized, the JV will solidify Eni and PETRONAS as major gas players in Southeast Asia, offering a strong production base, substantial reserves and significant long-term growth potential. The move comes at a time when the region’s energy demand is projected to rise sharply, particularly for natural gas as a transition fuel.
E’s Zacks Rank & Key Picks
E currently carries a Zack Rank #4 (Sell).
Investors interested in the energy sector may look at some better-ranked stocks like Subsea 7 S.A. SUBCY, Oceaneering International, Inc. OII and RPC Inc. RES. Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while Oceaneering Internationaland RPC carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2025 EPS is pegged at $1.31. The company has a Value Score of A.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.
The Zacks Consensus Estimate for OII’s 2025 EPS is pegged at $1.79. The company has a Value Score of B.
RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield is higher than that of the composite stocks in the industry. Its new Tier IV dual-fuel fleet has boosted profits, with plans to further expand high-efficiency equipment to enhance operational capabilities.
The Zacks Consensus Estimate for RES’ 2025 EPS is pegged at 38 cents. The company has a Value Score of A.
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Eni SpA (E): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis Report RPC, Inc. (RES): Free Stock Analysis Report Subsea 7 SA (SUBCY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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