Searah Ltd, the upstream joint venture between Petroliam Nasional Bhd (PETRONAS) and Italy’s Eni, has secured a US$6 billion (RM24.5 billion) revolving credit facility to support the expansion of its upstream oil and gas operations across Malaysia and Indonesia.
In a statement, Searah said the financing marks its first international syndicated loan and is among the largest syndicated energy financing deals in Southeast Asia this year. The facility is expected to provide greater financial flexibility to accelerate the development of producing assets, advance new upstream projects, and support the company’s medium-term production and investment plans.
The syndicated loan attracted strong interest from global financial institutions, with commitments exceeding the initial offering, reflecting continued confidence in Southeast Asia’s energy sector despite ongoing global economic uncertainty and the transition towards cleaner energy sources.
A total of 20 international banks participated in the financing, including Banco Santander, Bank of China, Barclays, BBVA, BofA Securities, Citi, DBS, HSBC, JP Morgan, Mizuho, MUFG, SMBC, UOB, Wells Fargo, and several other leading financial institutions. JP Morgan also acted as the sole debt adviser for the transaction.
Searah said the funding will strengthen its ability to expand existing producing assets and progress upstream developments in Malaysia and Indonesia, where rising industrialisation and economic growth continue to drive energy demand.
The company is jointly owned by PETRONAS and Eni, with each holding a 50% stake. It manages a portfolio of 19 upstream oil and gas assets, comprising 14 assets in Indonesia and five in Malaysia.
Established to combine the upstream portfolios of PETRONAS and Eni, Searah aims to enhance operational efficiency, optimise asset performance, and strengthen long-term hydrocarbon production across Southeast Asia.
The new financing is expected to reinforce the company’s balance sheet while providing additional capital to support future upstream investments and contribute to regional energy security.
According to Searah, its operations focus on the safe, reliable, and efficient exploration, development, and production of oil and gas resources. The company currently operates through three business units: Operating Company Malaysia in Kuala Lumpur, and Operating Company Ketapang and Operating Company Muara Bakau in Jakarta.
