long with the increasing demand for oil and gas resources and mastery of technology, exploration and production activities are increasingly reaching beyond the hydrocarbon deposits resulting from the migration of the petroleum system or "conventional oil and gas". Various studies have shown that the potential for oil and gas that is left behind and does not migrate, namely stored in source rock, is far more abundant than oil and gas trapped in conventional reservoirs. This type of hydrocarbon is commonly referred to as “unconventional hydrocarbon" which is characterized by the use of fracturing technology during its development. This unconventional hydrocarbon potential is being intensively developed in developed countries, especially in the United States and dominates the production of hydrocarbons.

Based on the Regulation of the Minister of Energy and Mineral Resources Number 35 of 2021, Unonventional Oil and Gas are natural oil and gas that are formed and confined to reservoir rocks with fine grain and low permeability within the maturity zone which will be economical if produced through horizontal drilling using a hydraulic fracturing stimulation technique. , including Shale Oil, Shale Gas, Tight Sand Oil, Tight Sand Gas, Coal Matana Gas, and Methane-Hydrate.

The following are 5 prospect areas for the exploitation of Coal Bed Methane in open areas. Prospective study activities are carried out by the Geological Agency in 2016 – 2020:

Unconventional Hydrocarbon concessions can be proposed in Open Areas and exixting Conventional Oil and Gas Working Areas.

The proposal for the Concession of Unconventional Hydrocarbon in an Open Area, the provisions for the preparation and bidding process based on the Minister of Energy and Mineral Resources Regulation Number 35 of 2021.

Conventional Oil and Gas Contractors can submit Potential Study to see the economic opportunities for Unconventional Hydrocarbon exploitation. Cost of Study Potential can become cost recovery or taxable deduction.

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