“Each shareholder of the project has paid its share in the project, except Croatia. Every country has to pay £70,000, a financial obligation that Romania has already met (through Oil Terminal Constanta and Conpet) as well as Serbia (through Transnafta). According to the agreement, if one of the party doesn’t fulfill the financial obligations, the country will be sent a notification letter”, said Gheorghe Ionescu, technical director of Conpet, one of the shareholders of the project.

Gheorghe Ionescu said the board of directors is drafting a notification letter that will be delivered to Croatian company Janaf within two weeks.

“If within 30 days after the receipt of the letter Croatia doesn’t make the payment, it will be left out of the project without right of appeal”, said the president of Conpet.

Moreover, Croatia failed to attend the meeting of PEOP members on May 26 that took place in Ploiesti and at the meeting in February that took place in Serbia. Initially, Italy was also included in the project, but hasn’t assigned yet a company to act on its behalf in the PEOP project.

The companies that represent Romania in the project are Conpet and Oil Terminal, Transnaft on behalf of Serbia and Janaf from Croatia. Each country will have an equal 33.3% stake in the formally established company that will undertake the construction and operation of the pan European oil pipeline.

So far, the members of the board met seven times: in September 2008 in Romania, in October in Serbia, in December in Romania, in May 2009 in Serbia, in January 2010 in Romania, in February 2010 in Serbia and in May in Romania. Only the representatives from Romania and Serbia attended the latter two meetings.

Members of the PEOP consortium haven’t picked a managing director for the newly-established company.

The costs for the construction of the Constanta-Trieste oil pipeline were estimated at €3 billion, and the total length of the pipeline would be around 1,360 kilometers.