PETALING JAYA: Searah Ltd, the upstream joint venture (JV) between Petroliam Nasional Bhd (PETRONAS) and Italy’s Eni, has secured a US$6bil (RM24.5bil) revolving credit facility, strengthening its financial capacity to expand upstream oil and gas operations in Malaysia and Indonesia.
The financing, one of the largest syndicated energy loan transactions in South-East Asia this year, marks Searah’s debut in the international syndicated loan market.
The company said the facility will provide greater financial flexibility to accelerate the development of producing assets and new upstream projects while supporting its medium-term production targets and future investment opportunities.
The transaction drew strong demand from international lenders, with commitments exceeding the amount offered, underscoring continued investor confidence in South-East Asia’s oil and gas sector despite global economic uncertainty and the ongoing transition towards cleaner energy.
A total of 20 financial institutions participated in the syndicated facility, including Banco BPM, Banco Santander, Bank of China, Barclays, BBVA, BofA Securities, BPER, Citi, DBS, HSBC, Intesa Sanpaolo, JP Morgan, Mediobanca, Mizuho, MUFG, Natixis CIB, SMBC, UniCredit, UOB and Wells Fargo.
JP Morgan also acted as debt adviser, assisting Searah in structuring and executing the transaction.
Searah said the financing will enable it to expand existing producing assets and advance upstream developments across Malaysia and Indonesia, where energy demand continues to rise alongside industrialisation and economic growth.
The successful fundraising also reflects sustained appetite among international banks for strategic investments in South-East Asia’s energy sector.
Although governments across the region investing heavily in renewable power, it is notable that oil and natural gas remain essential to maintaining reliable energy supplies and supporting economic growth.
Searah is jointly owned by PETRONAS and Eni, with each company holding a 50% stake.
The JV manages a portfolio of 19 upstream oil and gas assets, comprising 14 in Indonesia and five in Malaysia.
The company was established to combine the upstream portfolios of the two energy groups, with the aim of improving operational efficiency, optimising asset value and strengthening long-term production across South-East Asia.
The latest financing is expected to reinforce Searah’s balance sheet and provide additional funding capacity as Malaysia and Indonesia continue to play a significant role in meeting the region’s energy security needs through future upstream developments.
According to its website, Searah’s activities focus on safe, reliable and efficient exploration, development and production of oil and gas resources.
“With an established production base, substantial reserves and resources, and a pipeline of development opportunities, Searah contributes to energy security across South-East Asia and to the sustainable development of the communities where it operates,” it said.
The firm operates through three operating companies, Operating company Malaysia in Kuala Lumpur, as well as Operating company Ketapang and Operating company Muara Bakau which are based in Jakarta.
