The declaration was signed at a forum on energy security, held in Zagreb on Tuesday as part of Croatia's presidency of the Southeast European Cooperation Process (SEECP).
The PEOP, estimated to be some 1,856 kilometres long, will run through Romania, Serbia, Croatia, Slovenia and Italy. The length of the Croatian section is 435 kilometres. The PEOP is expected to follow the existing route of the Adriatic oil pipeline, but a new corridor will have to be built from Melnice to the border with Slovenia.
Croatian Prime Minister Ivo Sanader, who attended the signing ceremony, said that the PEOP project was of strategic importance for Croatia and other countries involved in its development, and that their economies were expected to benefit from it.
Croatia's direct economic benefit, depending on the pipeline's capacity, is expected to range between 1.3 and 2.2 billion US dollars, Sanader said.
Croatian investments in the project would range from 550 to 980 million dollars, depending on the pipeline's capacity, Sanader added.
He also underlined the ecological component of the project, which would significantly reduce tanker transport in the Adriatic.
Sanader also expects Croatian oil refineries to benefit from the project by obtaining better oil.
European Energy Commissioner Andris Piebalgs said that global oil demand was expected to increase by 41% in the next 25 years, which underlined the importance of building the necessary infrastructure linking markets with oil-rich regions.
The signing of the declaration was also welcomed by officials from other countries-signatories, who cited the stability of oil supply from the Caspian region and possibilities of regional development as the main advantages of the project.
Slovene Economy Minister Andrej Vizak said the declaration should not be binding, but convey good political will.
After the signing of the declaration, companies wishing to export oil from the Caspian region via this route and potential buyers will have to be identified. If interest is sufficient, the necessary documentation, such as feasibility and environmental impact studies, will have to be drawn up.
The total cost of the PEOP project is estimated at 2.62 billion US dollars in case the pipeline's annual capacity is 60 million tonnes, or 3.96 billion US dollars in case its annual capacity is 90 million tonnes.
The signing of the declaration was also welcomed by the European Commission.