Romania, Croatia and Serbia sign Constanta-Trieste oil pipeline agreement

“Without Italy and Slovenia there will be no project,” said Vladimir Vrankovic, Executive General Manager and member of the Board of Directors of the Croatian JANAF company.

Viorel Palasca, State Secretary with the Ministry of Economy and Finance, said that Slovenia and Italy have not appointed the companies to represent them in the project.

“Italy is expecting the election of a new government, which will decide if the country will get involved in the project. However, the project can go forward. There are other options,” said Palasca.

Oil Terminal and Conpet will represent Romania in the project, along with Serbian company Transnafta and Croatian company JANAF.

Palasca said that the management will be made up of a council of six members, two from each country.

The social capital has 2,100 shares and each country will control one third. Palasca added that several companies have already expressed their interest to invest in the project, and well as suppliers, such as Azherbaijan and Kazakhstan. The Romanian state will try to include Oil Terminal and Conpet on the list of investors.

A $2 million feasibility study carried out by the World Bank indicates that there is an annual transport volume of 60 million tons of oil. The study includes three options for the building of the oil pipeline. Construction would begin next year and be completed in 2013. At an annual volume of 60 million, Romania could obtain profits of $3 billion in 20 years, according to Palasca.