Pipeline Agreement Template for Indonesia

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.

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