Eni to up investment in Indonesia for 2013

By Peni Pedriawan

Italian oil and gas company Eni S.p.A. will boost its investment in Indonesia to up to US$1.2 billion next year from $400 million this year, a government official said on Monday.

Haposan Napitupulu, Deputy Chairman for Planning at upstream authority BPMIGAS, told reporters that Eni will increase the number of well drillings next year. He didn't provide further details.

The government last year awarded production-sharing contracts to Eni for a 100 percent interest in the offshore Arguni I Block in the Bintuni Basin. Eni is also operator of the North Ganal Block, which the government last year awarded to a consortium of which Eni is part of.

The two blocks are in addition to Eni's areas of operations that include the Muara Bakau, Bukat, Arguni, Krueng Mane and West Timor blocks.

Separately, BPMIGAS Chairman, R. Priyono, said during the 10th anniversary celebrations of the upstream oil and gas body that contractors will be reimbursed by the government for the costs they incur for certain social projects around their areas of operation.

"The Minister of Energy and Mineral Resources, within the next two weeks, will issue a ministerial decree that will allow the funds for corporate social responsibility projects to be included in the cost recovery," Priyono said.

The cost recovery is the fund the government reimburses to oil and gas producers for cost incurred during exploration and production phases.

Editing by Dadan Wijaksana