Romania Backs Involvement Of Gaz De France, Kazakhstan In PEOP Proj

"Romania supports the involvement of GdF in the construction of the pipeline,” Palasca told MEDIAFAX.

A ministry official in October said the coordinator of the oil pipeline, Jozias Johannes van Aartsen, informed the economy and finance minister Varujan Vosganian of the possibility to extend the pipeline project to Marseille in France, adding the EC would analyze the proposal in the near future.

French monopoly Gaz the France owns one of the largest gas distributors in Romania, Distrigaz Sud, which it bought in 2005.

Palasca also said Romania would also back Kazakhstan to take part in the project and will request a clear stand on the matter from Azerbaijan.
"The involvement of Kazakhstan has two aspects. First of all, they said they want to deliver oil using this pipeline. Second, Romania will back financial participation of the country in the constriction, if they want to and if other PEOP partners agree,” Palasca said.

Kazak state-owned KazMunaiGaz bought last year the majority stake in Romania’s second largest oil group, Netherlands-registered Rompetrol Group NV.

The construction of the 1,400 kilometer-long Constanta-Trieste oil pipeline is estimated to cost some $2.6 billion and is slated for service in 2012.

On April 3, the European Commission and the energy ministers of five southeast European countries signed a declaration to build the oil pipeline connecting Constanta in Romania to Trieste in Italy, in a move aimed at reducing dependence on the crowded Bosphorus Straits in Turkey to supply European markets with Caspian oil.