The Romanian Ministry of Economy and Finance and its counterparts in Croatia and Serbia signed here on Tuesday an agreement on the setting up of a company to develop the Pan European Oil Pipeline (PEOP) linking the Romanian Black Sea port of Constanta to Trieste, Italy.
'The project company will be registered in 45 days in London, where it will have its social headquarters', State Secretary at the Romanian Economy Ministry Viorel Palasca said.
The company will have 2,100 shares carrying a par value of 100 pounds sterling. Romania will hold one third of the company's share capital, via the two companies appointed to represent Bucharest in the PEOP project, namely Conpet and Oil Terminal, which are to participate 35,000 pounds each.
Serbia is represented by Transnafta company and Croatia by Janaf company, which are also to hold each a third of the shares.
'We await the involvement in this company of Slovenia and Italy, which are yet to appoint the companies to represent them in this project. Italy, most likely, will give us an answer after the new government is made up, so that we have positive signals from them', Palasca announced.
He stressed that the role of the development company will be to promote the PEOP project, so as to attract investors.
'We discussed with representatives for Kazakhstan and Azerbaijan and they said they are interested in being at least suppliers in this project, and even investors and participants', the Romanian state secretary said.
Oil Terminal managing director Mihai Lupu stressed he had been made requests by traders in this sector, who are interested in taking part in the project, but he declined to name any of them.
'As far as the involvement of Oil Terminal and Conpet in this project is concerned, the Romanian state should make a decision', Lupu added.
He said a feasibility study of the project has already been made, in partnership with the World Bank. According to the survey, the capacity of the pipeline will be 60 million tonnes a year, it will be built during 2009-2013, with the funds required to complete the project ranging from 2.9 billion euros to 3.3 billion euros, he added.
The Oil Terminal head stressed that one of the biggest problems to be faced will be the expropriation of the land located on the pipeline route.