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

Haposan Napitupulu, deputy chairman for planning at Indonesian upstream oil and gas regulator BP Migas, told reporters that Eni will increase the number of well drillings next year. He didn't provide further details, however.

The government last year awarded production-sharing contracts to Eni for the company's 100% 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, BP Migas's chairman, Raden 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," Mr. Priyono said.

The cost recovery is the money the government reimburses to oil and gas producers as part of the production costs.

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