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Pipeline Agreement for Indonesia

Pipeline Agreement Template for Indonesia

A Pipeline Agreement under Indonesian law is a comprehensive contract governing the construction, operation, maintenance, and use of pipeline infrastructure for transporting oil, gas, or other substances. The agreement complies with Indonesian regulatory requirements, particularly Law No. 22 of 2001 (Oil and Gas Law) and related regulations. It establishes the rights and obligations between the pipeline operator and shipper(s), covering technical specifications, operational standards, tariffs, capacity allocation, maintenance responsibilities, and risk allocation. The document includes specific provisions for environmental protection, safety standards, and local content requirements as mandated by Indonesian legislation.

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What is a Pipeline Agreement?

A Pipeline Agreement is essential for establishing the legal and operational framework for pipeline infrastructure projects in Indonesia. This document is used when parties need to formalize arrangements for the transportation of oil, gas, or other substances through pipeline systems. The agreement must comply with Indonesia's complex regulatory framework, including the Oil and Gas Law (Law No. 22 of 2001) and various government regulations concerning downstream oil and gas activities, environmental protection, and technical standards. The Pipeline Agreement addresses crucial aspects such as transportation services, capacity rights, operational requirements, tariffs, maintenance obligations, and risk allocation. It typically involves interaction with key regulatory bodies such as SKK Migas and BPH Migas, and must incorporate specific Indonesian requirements regarding local content, environmental protection, and safety standards.

What sections should be included in a Pipeline Agreement?

1. Parties: Identification of the contracting parties, including pipeline operator and shipper(s)

2. Background: Context of the agreement, project overview, and relevant regulatory framework

3. Definitions and Interpretation: Defined terms, interpretation rules, and language governing provisions

4. Term and Commencement: Duration of the agreement, conditions precedent, and commencement date

5. Pipeline System: Description of pipeline infrastructure, entry and delivery points

6. Transportation Services: Scope of services, capacity rights, and operational requirements

7. Technical and Operating Standards: Compliance with Indonesian regulations and industry standards

8. Maintenance and Repairs: Maintenance obligations, scheduled shutdowns, and emergency repairs

9. Health, Safety, and Environment: HSE requirements, compliance with Indonesian environmental laws

10. Tariffs and Payment: Transportation fees, payment terms, and invoicing procedures

11. Quality and Measurement: Product specifications, measurement methods, and quality control

12. Force Majeure: Force majeure events and consequences

13. Liability and Indemnification: Risk allocation, liability caps, and indemnification provisions

14. Insurance: Required insurance coverage and policy requirements

15. Termination: Termination events, consequences, and post-termination obligations

16. Governing Law and Dispute Resolution: Indonesian law application and dispute resolution mechanisms

17. General Provisions: Standard boilerplate clauses including notices, assignments, and amendments

What sections are optional to include in a Pipeline Agreement?

1. Pre-Commissioning and Testing: Used for new pipelines requiring initial testing and commissioning

2. Interconnection Provisions: Required when pipeline connects with other transportation systems

3. Ship-or-Pay Obligations: Include when minimum volume commitments are required

4. Gas Balancing: Necessary for gas pipeline agreements with multiple shippers

5. Local Content Requirements: Include when specific Indonesian local content obligations apply

6. Security Arrangements: Used when performance security or guarantees are required

7. Change in Law Provisions: Detailed provisions for managing regulatory changes in Indonesian law

8. Emergency Response Procedures: Detailed procedures for high-risk pipeline locations

What schedules should be included in a Pipeline Agreement?

1. Technical Specifications: Detailed technical specifications of the pipeline system

2. Transportation Tariff Schedule: Detailed breakdown of tariffs and calculation methodologies

3. Product Specifications: Quality specifications for transported product

4. Measurement Procedures: Detailed measurement and testing procedures

5. Operating Procedures: Day-to-day operational procedures and requirements

6. Form of Shipper Nominations: Standard forms for capacity nominations

7. Emergency Contact Details: List of emergency contacts and procedures

8. Required Permits and Licenses: List of regulatory approvals and permits

9. Pipeline Route and Coordinates: Detailed mapping of pipeline route and key coordinates

10. Performance Security Forms: Template forms for any required guarantees or security

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Project Agreement

Cost

Free to use
Relevant legal definitions



























































Clauses


































Relevant Industries

Oil and Gas

Energy Infrastructure

Transportation and Logistics

Industrial Manufacturing

Petrochemicals

Mining

Utilities

Construction and Engineering

Environmental Services

Relevant Teams

Legal

Operations

Commercial

Health Safety and Environment

Engineering

Regulatory Affairs

Project Management

Risk Management

Maintenance

Technical Services

Environmental Compliance

Contract Administration

Relevant Roles

Operations Manager

Pipeline Engineer

Commercial Manager

Legal Counsel

HSE Manager

Regulatory Compliance Officer

Project Manager

Technical Director

Contract Administrator

Risk Manager

Environmental Compliance Officer

Maintenance Supervisor

Commercial Director

Chief Operating Officer

Infrastructure Development Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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