Indonesia has began the unconventional operation since 2003, VICO and MEDCO as a pioneer in Coal Bed Methane (CBM) working Area. Since 2005, two (2) big company has begun study and survey seismic operation for Kutai Basin (VICO Indonesia) and South Sumatera Basin (MEDCO E&P). The results are neededmore survey seismic and massive drilling well, which the needs of study and evaluation to get more comprehensive calculation on gas methane reserves and the strategy of Exploration and Development phase on each basin

The success ratio by numbers of drilling operation of CBM wells in Kutai Basin and Sumatera Basin were not significantly good as early prediction. This condition made some CBM contractors working areas has to leave and do farm out from the area. Nowadays, by counting the total of Unconventional Working Area in Indonesia, the active operation area are around 40 places in Sumatera and Kalimantan.

The slow down activities of CBM operation are caused by the minimum number of success ratio to discovery and to produce Methane Gas; challenge for the contractors to fullfill the commitment which where list stated on Production Sharing Contract (PSC). Other obstacles are the permits, where contractors get more difficulties to do all the activities, such as land acquisition permit (IPPKH if needed), environment permit (UKL/UPL), Rig License permit, procurement process and else.

Nowadays, Government of Indonesia has given more simplication for contractors in Regulatory area, Procurement Policy and Operating Procedure Guideline to do CBM activitiesin Indonesia.

With several breakthroughs have been taken by the Government of Indonesia, in future prospect CBM activities will be expected back to normal with more efficient by collaboration of government and contractor for technical and technology in exploration and drilling activities. By the results of Methane Gas discovery increased the Total Reserves and Energy Resilience of Gas in Indonesia.

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