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SEOUL, South Korea has announced plans to overhaul its steel industry as the sector grapples with growing challenges from international tariffs and persistent oversupply, the Ministry of Trade, Industry and Energy said on Tuesday. According to the ministry, the restructuring initiative will focus on improving the industry’s overall competitiveness and resilience amid mounting global trade pressures. The United States and the European Union have recently imposed higher tariffs on steel imports, placing added strain on South Korean producers who are already contending with declining margins and weaker global demand. The ministry said the government will take pre-emptive measures to adjust production capacity for steel products facing excess supply, in an effort to stabilise prices and improve operational efficiency across the sector. In addition, financial aid and policy support will be expanded to help exporters mitigate the impact of tariffs and maintain access to key international markets. Authorities are also considering targeted investments in advanced steelmaking technologies and environmentally sustainable production methods to help local companies transition toward greener and higher-value products. “The restructuring plan aims to ensure the long-term stability and competitiveness of Korea’s steel industry, particularly in light of global market changes and trade barriers,” the ministry said. Industry observers note that South Korea, one of the world’s top steel exporters, has been under increasing pressure to adapt as the global market faces slower growth and heightened protectionism. The government’s move is seen as a step toward balancing industrial capacity while fostering innovation and sustainability within the steel sector.

KUALA LUMPUR, Italy’s Eni and Petroliam Nasional Bhd (Petronas) have signed a binding agreement to establish a jointly owned company (NewCo), combining their upstream oil and gas assets in Indonesia and Malaysia. The agreement, which follows the framework pact inked in June 2025, will see both parties hold equal stakes in NewCo, which will manage 19 assets — 14 in Indonesia and five in Malaysia — representing substantial enterprise value. According to Eni, NewCo will be a financially independent entity with plans to invest over US$15 billion (US$1 = RM4.18) within the next five years. Eni chief executive officer Claudio Descalzi said the collaboration would leverage existing production assets and development initiatives in Indonesia’s Kutei Basin and offshore Malaysia, targeting over 500,000 barrels of oil equivalent (boe) per day in the mid-term. “This partnership will generate significant value for Eni, Petronas, as well as for Indonesia and Malaysia, driven by our strong exploration capabilities and track record in delivering efficient, high-value projects,” he said. Through NewCo, both companies will merge their complementary portfolios, technical expertise, and regional experience to drive operational excellence, long-term value creation, and leadership in the energy transition. The planned US$15 billion investment will fund at least eight new development projects and 15 exploration wells, aiming to develop around three billion boe of discovered reserves and unlock an estimated 10 billion boe in potential resources. NewCo will integrate a large portfolio of gas-producing and development assets across both countries, starting with more than 300,000 boe per day in production and targeting over 500,000 boe per day in the medium term. The venture aligns with Eni’s “satellite model” strategy, following successful partnerships such as Vår Energi in Norway, Azule Energy in Angola, and Ithaca Energy in the United Kingdom. Both companies will now seek the necessary regulatory, government, and partner approvals in Malaysia and Indonesia, with the deal expected to close in 2026.