Why are oil and gas companies like Eni shifting capital investments to Southeast Asia and Latin America, according to Eni CEO Claudio Descalzi?

According to Eni CEO Claudio Descalzi, oil and gas companies are shifting capital investments to Southeast Asia and Latin America due to the prolonged disruption of shipping through the Strait of Hormuz. This geopolitical risk has prompted a strategic reallocation of capital toward more stable and resource-rich regions, with Southeast Asia emerging as a new focal point for upstream gas investment and Latin America—particularly Argentina and Guyana—becoming key drivers of large-scale energy development.

What specific joint venture has Eni formed in Southeast Asia, and what is its purpose?

Eni has formally established a joint venture named Searah with Malaysia’s national oil company, Petronas. The purpose of Searah is to integrate 19 upstream natural gas assets across Indonesia and Malaysia, with the aim of accelerating regional gas development and significantly increasing production—centered on Eni’s deepwater gas projects in the Kutai Basin off East Kalimantan, Indonesia.

Eni CEO: Oil & Gas Capital Bets on Southeast Asia and Latin America

Jul 22, 2026

Eni CEO Claudio Descalzi announced a strategic shift of oil and gas investments toward Southeast Asia and Latin America due to geopolitical risks. Key developments include a joint venture targeting 18% regional output growth and a $30 billion LNG complex in Argentina.

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Eni CEO: Oil & Gas Capital Bets on Southeast Asia and Latin America

Eni CEO: Oil & Gas Capital Bets on Southeast Asia and Latin America

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