Kuala Lumpur: Petroliam Nasional Berhad (Petronas) has entered into a joint venture framework agreement (JVFA) with Italian energy company Eni to advance discussions and evaluations aimed at establishing a regional upstream joint venture (JV) company. The agreement is an extension of a memorandum of understanding signed in December 2024 and signifies a commitment from both entities to integrate selected upstream interests in Malaysia and Indonesia.

According to BERNAMA News Agency, the national oil and gas company stated that the JVFA is expected to deliver up to 500,000 barrels of oil equivalent per day of sustainable production. The collaboration will focus on approximately three billion barrels of developed reserves and an estimated 10 billion barrels of exploration potential. Petronas emphasized that definitive agreements are anticipated to be finalized by the end of 2025, contingent upon regulatory, governmental, and partner endorsements.

In a separate announcement, Petronas CCS Ventures Sdn Bhd (PCCSV), MISC Bhd (MISC), and Mitsui OSK Lines Ltd (MOL) have formed a strategic joint venture company, Jules Nautica Sdn Bhd. PCCSV, a wholly owned subsidiary of Petronas, stated that this JV will spearhead the development and ownership of liquefied carbon dioxide (LCO2) carriers, essential for transporting LCO2 to designated storage sites as part of the enhancement of carbon capture and storage (CCS) solutions.

Petronas explained that the JV aims to establish itself as a leading owner of LCO2 carriers to ensure the safe and efficient transportation of LCO2 to designated carbon dioxide (CO2) storage locations. The JV will concentrate on supporting future CCS projects throughout the Asia Pacific region and will be instrumental in completing the CCS value chain. Through strategic commercial agreements with CO2-emitting industries and storage firms, this partnership intends to offer a critical cross-border solution to address growing environmental and regulatory demands.