The PEOP project will regulate the provision of oil supplies for the European market from the Caspian region by a pipeline going from the Black Sea port of Constanta, Romania, to the Trans Alpine Line (TAL) near Trieste.
This route would help decrease tanker transportation at the Adriatic.
The next step upon the conclusion of the declaration will be to determine which companies will opt for exporting oil by this route from the Caspian region and which ones would like to buy supplies.
The idea about PEOP cropped up in late 1990s. In its initial stage, the project was to pass from Constanta to Pancevo, Serbia, and via Croatia's town of Omisalj on the island of Krk to Trieste, calling it the Constanta-Pancevo-Omisalj-Trieste route (CPOT).
It was later established that PEOP would have a grater market than the initial CPOT plans.
The PEOP route is likely to be long 1,856 kilometres, and Croatia's section is 435 kilometres long.
A bottom line of the project's viability is the annual transport of 40 million tonnes of oil. It is forecast that the pipeline will be able to transport 90 million tonnes annually.
The total costs for making the entire system operational are estimated between 2.62 and 3.96 billion dollars, which will depend on how much oil will be transported annually.
If using it in 20 years, Croatia will ensure economic benefits of 1.9 billion dollars. Croatia is expected to invest between 760 million and 1.1 billion dollars in the project.
The Croatian company called "Jadranski Naftovod", or JANAF, is intensively participating in the preparation of the PEOP project.
On 3 April, the international conference called "South East Europe - Energy Bridge Between the Russian Federation, the Mediterranean, the Caspian and Middle East Areas and the European Union" will gather ministers and energy experts from 37 countries.
About 400 participants are expected to discuss three topics: energy security in Europe, energy projects in SEECP member states and possibilities for investments in the energy sector.