Pan-European Oil Pipeline

History

The project was originally proposed in 2002. Signing of the memorandum of understanding on the construction of the pipeline was several times delayed until on 3 April 2007 it was signed by officials of Croatia, Italy, Romania, Serbia, and Slovenia during an energy forum in Zagreb. On 22 April 2008 Romanian, Serbian and Croatian companies signed an agreement establishing the Pan-European Oil Pipeline Project Development Company (PEOP PDC). On 10 July 2008 Shareholders adopted the Statute and appointing the Managing Board of the PEOP PDC Plc.

The national governments of Romania, Serbia and Croatia are favorable about the project. Most engaged is the President of Romania, Traian Băsescu, who has cited a study estimating the benefits of the project for Romania over 20 years of operation in the range between US$2.27 to 4.39 billion. The Government of Serbia is also politically motivated so as to decrease its dependence on crude oil supply from Croatia.

In 2006, the Government of Slovenia did not support the project because the 29 kilometres (18 mi) long stretch would pass the environmentally sensitive Karst terrain and no national interest exists regarding oil supply. Nevertheless, Slovenian representatives in 2009 expressed support for the project.

On January 15, 2010, JANAF decided to freeze its involvement in PEOP. The Romanian and Serbian companies responded by saying they would still build the pipeline from the Black Sea to the Pančevo refinery.