of Java Island. In Kalimantan Island, the proven reserves are in Barito, Kutei, Tarakan, Melawi, and Ketungau. Whereas, in Sulawesi Island, there is only one proven reserve, which is Sengkang. Lastly, in Papua Island, the reserves are found in Akimeugah and Bintuni. As of 2012, shale gas, like coal bed methane (CBM), is not yet being developed in Indonesia. The potential reserve of Indonesia shale gas is greater than either CBM or conventional natural gas, with 453 tcf and 334 tcf, respectively. The Indonesian government has established new regulations to reduce the cost of development of shale gas to ease the advancement of shale gas and bolster exploration both offshore and onshore. The government hopes that these new regulations will attract international as well as national investments. The vital part of this new regulation is that the government now treats oil and gas as oil and natural gas. The government also acknowledges the fracking technology, which makes shale gas exploration possible. There are some challenges in shale gas development in Indonesia even though that it has abundant resources of shale gas. First, there is a concern that hydraulic fracturing technology could affect the water system in certain areas. Advance and better technology must be applied if the developer wants to utilize the shale gas. Other challenges such as poor local governance, lack of incentives for investors, and insufficient infrastructure must also be addressed. Pakistan As of 2009, Pakistan stands 19th in the world in terms of total technically recoverable shale gas reserves. Pakistan has about 51 trillion cubic feet (Tcf) of shale gas reserves. Pakistan consumes 100% of natural gas that it produces, so shale gas may be an area of future growth in Pakistan. The US Energy Information Administration (EIA) has estimated shale gas at 586 Tcf against its 2011 estimates of 52 Tcf for Pakistan. More recent estimates as of November 2015, point to over 10,000 Tcf of Shale gas reserves, of which about 205 Tcf is technically recoverable as reported recently by Pakistan's Minister of Petroleum and Natural Resources, Shahid Khaqan Abbasi. Exploratory drilling continues. Europe While Europe has no shale gas production as yet, the success of shale gas in North America has prompted geologists in a number of European countries to examine the productive possibilities of their own organic-rich shales. Norwegian company Statoil is in a joint venture with Chesapeake Energy to produce Marcellus Formation