Soon: Signing of memorandum on Pan-European Oil Pipeline in Rome

The representatives of the governments of countries that joined forces in development of project for Pan-European Oil Pipeline (PEOP) will sign the Memorandum on understanding in January 2006 in Rome, which will represent the act of concrete support to PEOP by the authorized ministries of these countries - assistant to the Minister of Mining and Energy, Slobodan Sokolović, announced.

The Memorandum will be signed by the authorized ministers of the governments of Romania, Serbia, Croatia and Italy and it is expected that the representatives of Slovenia will come.

Sokolović pointed out that the contract on founding of the Company for Development of Pan European Oil Pipeline would also be signed in Rome. The primary task of that company would be design of necessary studies and interstate contracts.

According to the estimates, 18 months of works will be needed for completion of the pipeline with the active cooperation with the representatives of countries included in the PEOP project, whereas the design of pre-investment studies will cost about €10m.

After the completion of PEOP project, through promotion and contacts with the interested oil companies and international institutions, the Company for Project Development will be obliged to provide conditions for forming of new company that will be in charge of construction and management of oil pipeline.

According to the estimates, construction of oil pipeline from Romanian port of Konstanca, via Pančevo, to Trieste would cost about 2 billion EUR. The length of the pipeline is 1,300 km.

The oil pipeline would significantly improve supply of Kaspian oil to the region of Central Europe and it would reduce its dependence on oil from the Near East.

194 km of Pan European Oil Pipeline would pass through Serbia, which would bring security in the energy sector in our country, as well as economic profit and strengthening of regional cooperation.