The CMB production sharing contract(PSC),like its conventional counterpart ,is the fundamental means of establishing fiscal terms and the starting point for administering CMB operations in cooperation with in Government of Indonesia. In terms of issues arising from the use of the CMB PSC,the 2010 Paper noted that the current PSC cost recovery at a field level impedes the commercial development of CBM across large areas or, in other word, denies the opportunity to benefit from economics of scale. In a similar vein, it was noted that Government approval processes stemming from the PSC cost recovery concept (for example,the upstream oil and gas procurement rules)make it more difficult to pursue an efficient factory-based approach to CMB E&P.