A new 50:50 partnership between Eni and PETRONAS called Searah has the potential to reshape Southeast Asia's upstream oil and gas sector, according to fresh analysis from Wood Mackenzie. The venture, which spans 19 upstream assets across Indonesia and Malaysia, will produce more than 300,000 barrels of oil equivalent per day from its first day of operation. Wood Mackenzie's report, titled "Searah: Eni and PETRONAS forge a new Southeast Asian major," concludes that the partnership possesses the scale, capital, and resource foundation to emerge as one of the region's leading upstream operators.
Searah is expected to exceed 500,000 boe/d on an entitlement basis by 2029, with longer-term production potential surpassing 800,000 boe/d, the report finds. Wood Mackenzie's modelling suggests Searah could become Southeast Asia's largest upstream producer by 2030, overtaking Pertamina, PETRONAS, PTTEP, Shell, and BP. The venture plans to invest $20 billion over the next five years, with capital spending reaching its peak in 2027 as multiple major projects advance at the same time. Eni's Kutei Basin portfolio contributes more than 12 trillion cubic feet of undeveloped gas across the Rapak, Ganal, and North Ganal production sharing contracts, while the 2026 Geliga discovery, estimated at 5 tcf, adds roughly $2 billion in value and supports a third Kutei development hub. The venture's growth platform extends beyond its initial investment program across the wider Kutei exploration portfolio, the Abadi LNG project, and assets offshore Malaysia, with potential expansion into Vietnam, deepwater Sabah, and the Andaman Sea providing further upside.
"Searah's assets and capital are in place; the challenge is whether this newly formed operator can deliver multiple billion-dollar developments in parallel without losing schedule or cost discipline," said Munish Kumar, a senior research analyst for upstream at Wood Mackenzie. Together, Searah will supply gas to three LNG facilities—including Bontang and the proposed Abadi LNG project in Indonesia, and MLNG in Malaysia—creating one of Southeast Asia's largest and most diversified equity LNG positions, according to the report. The 50:50 ownership reflects the capabilities and strengths each partner contributes rather than an equal split of reserves or cash flow, the report notes. PETRONAS contributes near-term production, cash flow, and established infrastructure in Malaysia, providing a stable financial base during the venture's early years, while Eni brings its deepwater Kutei Basin gas portfolio in Indonesia, creating a pipeline of medium-term developments and exploration upside.
The report identifies several factors that will determine whether Searah achieves its growth ambitions, including delivering the North, South, and proposed Geliga development hubs while advancing Abadi toward final investment decision, managing capacity constraints at the ageing Bontang LNG complex as new Indonesian gas volumes come online, and executing multiple large offshore developments amid a tight global deepwater supply chain. Coordinating investment across Indonesian and Malaysian regulatory frameworks and integrating Eni's exploration-led operating model with PETRONAS's established national oil company operating approach will also prove critical. The venture launches on a foundation of producing assets in Malaysia and Indonesia that provide immediate borrowing capacity without reliance on parental funding, and monetising the Kutei discovered resources will drive annual cash flows above $2 billion from 2030, the report finds.
Searah represents the latest evolution of Eni's strategic venture model, following Vår Energi in Norway, Azule Energy in Angola, and Ithaca Energy in the UK. It's Eni's first venture in Asia, its first with a national oil company partner, and its first built around an almost entirely growth-oriented portfolio. Headquartered in London, Searah will operate as a standalone company with autonomy over investment decisions while receiving technical support through service agreements with Eni. "Searah is the first real test of whether an IOC and an NOC can create a standalone regional champion by combining complementary portfolios rather than simply pooling assets," said Farid Wajdi Mohamad Isa, a senior research analyst for upstream at Wood Mackenzie. If it succeeds, it could establish a blueprint for how future upstream partnerships are structured across Asia.