Malaysia, Italy To Deepen Economic Ties With Focus On Energy Transition

ROME, July 2 (Bernama) -- Malaysia and Italy have agreed to enhance their long-standing economic ties, with a focus on energy transition that has also attracted interest from Japan and Indonesia.

Prime Minister Datuk Seri Anwar Ibrahim said Italy’s leading energy company ENI, and Petroliam Nasional Bhd (PETRONAS) are combining their expertise and technology to embark on energy transition projects that could be a breakthrough in ASEAN.

“As ENI and PETRONAS embark on this, the Prime Minister of Japan called me to express his country’s interest in joining this venture,” he said at the Malaysia-Italy Economic Partnership Roundtable Meeting held here today.

Last month, PETRONAS announced that it has entered into a joint venture framework agreement (JVFA) with ENI to advance detailed discussions and assessments towards establishing a regional upstream joint venture company. The JVFA reflects the shared commitment of both companies to manage a combination of selected upstream interests in Malaysia and Indonesia.

The proposed joint venture is expected to deliver up to 500 thousand barrels of oil equivalent per day (kboepd) of sustainable production, approximately three billion barrels of oil equivalent (BOE) of developed reserves, and an estimated 10 billion BOEs of exploration potential. It is also intended to support both companies’ future gas and liquefied natural gas (LNG) aspirations.

Anwar said the venture has gained more traction as Indonesian President Prabowo Subianto told him during his short visit to Jakarta last week that the republic was keen to join the collaboration with ENI and PETRONAS.

The premier, who arrived here on Tuesday for a three-day working visit, said Malaysia is looking forward to working closely with Italian companies that are well known for their great industrial transformation. Anwar said during his meeting with Italian Deputy Prime Minister and Foreign Minister Antonio Tajani before the roundtable meeting, and both agreed to enhance the relationship between the two countries. 

“We also discussed efforts to enhance strategic cooperation in various fields, including ties between Malaysia and ASEAN with the European Union (EU),” he added.

In his speech, Tajani said Malaysia remains one of the most strategic locations for Italian companies in Southeast Asia. “We are more and more involved in business in Malaysia, and hope to achieve more in the future. At the same time, we are open to Malaysian companies to invest here as we provide the corridor to the region,” he added.

-- BERNAMA