REPUBLIKA.CO.ID, JAKARTA -- The Upstream Oil and Gas Regulator (SKK Migas) predicted that investment in upstream oil and gas sector in 2014 would increase 32 percent from 2013.

Acting head of SKK Migas J Widjonarko said here on Monday investment in the upstream oil and gas sector was valued at US$19.342 billion in 2013 or up 12 percent from the previous year.

"In 2014, the investment is expected to increase 32 percent to US$25.64 billion from 2013," Widjonarko said, adding investment in the sector has continued to increase since 2010.

In 2010, investment in the upstream oil and gas sector reached US$11.031 billion, up to US$13.986 billion in 2011 and to US$16.543 billion in 2012.

He said the target for 2014 is in line with the oil production target of 870,000 barrels per day and gas production target of 7,175 billion British thermal unit per day (BBTUD).

The investment will include US$14.9 billion in production sector, US$5.3 billion for development, US$3.84 billion for explorations and US$1.6 billion for administration.

In 2013, oil production is estimated to average 826,000 barrels per day and gas production averaging 6,981 BBTUD.

Widjonarko said the agency would encourage investment in explorations, adding the target for exploration investment of US$3.84 billion is 105 percent higher from only US$1.877 billion in 2013.

"In the future, explorations would move to deep sea in the eastern part of the country," he said.

Phases of explorations in 2014 include drilling of 2,501 units of wells including 205 exploration wells.

In 2013, oil and gas revenues are estimated to reach US$56.557 billion including Rp31.669 billion in oil revenue and US$24.888 billion in gas revenue.

Oil revenues included US$18.957 billion for the state, US$3.142 billion for contractors and US$9.57 billion for cost recovery.

Gas revenues include US$12.358 billion for the state, US$6.121 billion for contractors and US$6.408 billion for cost recovery.

Combined, state revenues from the oil and gas sector totaled US$31.315 billion in 2013 with contractor earning US$9.264 billion and US$15.978 billion for cost recovery in 2013.

In 2013 the country's oil production averaged 826,000 barrels per day and gas production at 6,981 BBTUD.

The oil prices averaged US$105.82 per barrels and gas price averaged US$10.26 per MMBTU.

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