According to the implementation plan based on the idea of building the pipeline for transportation of crude oil from Caspian and Black Sea Region, starting from Romanian port of Constantza, further through Serbia, Croatia and Slovenia to Trieste in Italy, the Ministerial Declaration on PEOP was signed in April 2007 by all five interested states and the European Energy Commissioner. At the general meeting of the Interstate Committee for PEOP in February 2008, the Decision on incorporating of the Project Development Company was taken, with the headquarters in London/UK, and it was registered in June that year. Its task will be promotion of the PEOP and providing investors interested in the project. The State of Serbia has appointed the Public Enterprise “TRANSNAFTA” (since it was founded as the exclusive transporter of crude oil and performing the energy activities of common interest) to participate in its name and on its behalf as the founder of this Company. Upon the completion of the PEOP pipeline construction it would manage the section passing through the territory of the Republic of Serbia. The idea of PEOP project is that this oil pipeline is connected with TAL – Trans Alpine Pipeline in Trieste, after fulfillment the needs of refineries in five countries where it is passing through. Thus it would appear as one of the main suppliers of Central Europe with crude oil. In this moment, referring to the prior preliminary estimations, the oil pipeline is calculated with the capacity of 60 mil tons/year. This project is of the utmost strategic and national significance, because Serbia would be therewith in line of the international pipeline transporters of crude oil. On the other hand, it will be released from the absolute dependence in crude oil supply from the Republic of Croatia. The planned route of the Pan European Oil Pipeline in total length of 200 km through Serbia would enter our country at Bela Crkva, proceed along the skirt of Deliblatska pescara and then, over Pancevo and Novi Sad to Sotin (border with the Republic of Croatia) follow the route of the existing oil pipeline.

 

Besides the benefits which Europe will have in considerably easier physical approach to light crude oil from Caspian region and standard oils from the Black Sea region, the economic effects of the whole project and the part of it in Serbia are various. It is estimated that the savings on transportation costs comparing to the actual would be about 40% of today’s expenses. The income of the oil transportation tariff through our territory would be remarkable. Also, 

 

 

The route of this oil pipeline is taken from the “Feasibility Study for Constantza, Pancevo, Omisalj, Trieste Oil Pipeline Project”) prepared by the American engineering company HLP Parsons in 2004.