A Gas Sales Agreement is a fundamental document in Indonesia's energy sector, used when establishing a contractual relationship between a gas supplier and buyer. The agreement must comply with Indonesia's regulatory framework, particularly Law No. 22/2001 and associated regulations, while addressing commercial, technical, and operational aspects of gas supply. It is typically used for long-term gas supply arrangements and must incorporate specific Indonesian requirements including local content provisions, government approval processes through SKK Migas, and regulated pricing mechanisms. The document becomes necessary when companies need to establish secure, long-term gas supply arrangements for industrial use, power generation, or other commercial purposes, and must address both the commercial framework and technical requirements for gas delivery.
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1. Parties: Identification of seller and buyer, including registration details and addresses
2. Background: Context of the agreement, including seller's right to sell gas and buyer's intended use
3. Definitions and Interpretation: Definitions of technical and commercial terms, and rules of interpretation
4. Sale and Purchase Obligation: Core obligations including Daily Contract Quantity (DCQ) and Take-or-Pay provisions
5. Term: Duration of agreement, including conditions precedent and termination rights
6. Gas Quality: Specification of gas quality requirements and measurement standards
7. Delivery Point and Title: Specification of delivery point and transfer of title and risk
8. Transportation and Facilities: Responsibilities for gas transportation and facility maintenance
9. Measurement: Gas measurement procedures, standards, and dispute resolution
10. Price and Payment: Gas pricing formula, payment terms, and invoicing procedures
11. Supply Security: Seller's supply obligations and buyer's nomination procedures
12. Force Majeure: Definition and consequences of force majeure events
13. Liability and Indemnity: Allocation of risks and liability between parties
14. Default and Termination: Events of default, remedies, and termination procedures
15. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law
16. Confidentiality: Protection of confidential information and permitted disclosures
17. Governing Law: Specification of Indonesian law as governing law and interpretation principles
18. Boilerplate Provisions: Standard contract provisions including notices, amendments, and assignment
1. Make-up Gas: Used when parties agree to make-up rights for take-or-pay quantities - relevant for long-term industrial supply contracts
2. Seasonal Variations: Include when supply varies seasonally or buyer has variable demand patterns
3. Commissioning Gas: Required when agreement covers supply during plant commissioning phase
4. Carbon Credits: Include when parties agree to allocate carbon credits or environmental attributes
5. Infrastructure Development: Required when new infrastructure needs to be built for gas delivery
6. Government Approval: Include when specific government approvals are required beyond standard regulations
7. Local Content: Include when there are specific local content requirements under Indonesian law
8. Gas Balancing: Required when multiple buyers share same gas source or transportation system
1. Schedule 1 - Gas Specification: Detailed technical specifications of gas quality parameters
2. Schedule 2 - Testing and Measurement Procedures: Detailed procedures for gas testing and measurement
3. Schedule 3 - Price Calculation: Detailed pricing formula and adjustment mechanisms
4. Schedule 4 - Delivery Point Specifications: Technical details of delivery point facilities
5. Schedule 5 - Nomination Procedures: Detailed procedures for gas nomination and scheduling
6. Schedule 6 - Form of Bank Guarantee: Standard form for required bank guarantees
7. Schedule 7 - Technical Operating Procedures: Detailed operating procedures and standards
8. Schedule 8 - Contact Details: List of authorized representatives and contact information
9. Appendix A - Site Plan: Maps and drawings of delivery point and relevant facilities
10. Appendix B - Permits and Licenses: Copies of relevant permits and licenses
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