Agreement signed on forming of association of companies from Romania, Serbia, Italy and Croatia to participate in construction of PEOP

- The Agreement on forming of association of companies from Romania, Serbia and Croatia that will be participating in construction of Pan-European oil pipeline (PEOP) was signed on Tuesday (April 22, 2008) in Bucharest - said the Executive Manager of Public Company “Transnafta“, Nebojša Lemajić.

Lemajić announced that development company PDC would be founded in London within next 45 days and that legal experts of all signers should bring their positions in accord and prepare necessary documentation for registration of new company that will implement the PEOP project.

Construction of this oil pipeline, of which annual capacity is estimated to 60-90m tons, should cost about 3.5 billion USD, and the value of construction works in Serbia should amount to about 300m USD.

Construction of Pan-European oil pipeline would enable transportation of oil from the east zone of the Black Sea to European market.

The Agreement of merging of companies for the sake of implementation of PEOP project was supposed to be signed at the beginning of April, but Romania asked for postponement of talks about oil pipeline because of the NATO summit, which was held between April 1st and 4th in Bucharest.

In April 2007, Ministerial declaration was signed in Zagreb. According to that declaration, the states on the route and EU express their political support to this project.

Pan-European oil pipeline, 1,400 km long, should pass through Romania, Serbia, Croatia and Slovenia - to Italy.

Stockholders in newly formed company for development of this project will be the authorized companies from the countries encompassed by the project.

Transnafta ad Pančevo

Bucharest

PanEuropean oil pipeline

Nebojša Lemajić

PDC

Black Sea

Agreement on merging of companies for PEOP project

NATO summit Bucharest