BALI, Feb 1: Indonesia plans to raise oil output by more than 50,000 barrels a day this year, and expects investment of up to $6 billion in the oil and mineral sector over the period, the mines and energy minister said on Saturday.

At a meeting of oil and mining executives on Bali island, Purnomo Yusgiantoro also witnessed the signing of an agreement between PT Inco and Indonesian state-run nickel and gold miner PT Aneka Tambang (Antam) to develop nickel reserves in Southeast Sulawesi province.

He said this would result in investment of $300 million. PT Inco is a unit of Canada’s Inco Ltd PT Inco and Antam signed a memorandum of understanding last May on the project.

On the government’s plan to increase oil output by more than 50,000 bpd this year, Purnomo gave no precise timeframe.

Indonesia, Asia’s only Opec member, produced 1.05 million bpd of crude oil in December, below its Opec quota. Mines and energy officials have previously said the country did not have additional production capacity beyond current output levels.

Purnomo added that the energy sector would be a key contributor to investment this year in the world’s fourth most populous country.

Indonesia has a vast array of natural resources from oil and natural gas to coal, nickel and gold. But foreign investment has been hit in recent years by concerns over security and the devolution of more administrative powers to local authorities.

Investment in the energy and mineral sector this year is estimated to reach $5-6 billion, or around 40 per cent of total investment in Indonesia, Purnomo said without elaborating or giving comparative figures.

The nickel reserves to be developed by PT Inco and Antam are estimated at 10 million wet tonnes of high-grade nickel ore. They are adjacent to Antam’s smelting facilities but some 200 km (125 miles) away from Inco’s existing mining operations.—Reuters