Timor-Leste Petroleum Fund

The Minister of Finance is the formal investment authority, supported by an Investment Advisory Board composed of external experts. Day-to-day management is delegated to external fund managers selected through a competitive procurement process. The Petroleum Fund Consultative Council provides parliamentary oversight, and all significant policy decisions — including the benchmark portfolio and withdrawal rules — require parliamentary approval under the Petroleum Fund Law.

The Petroleum Fund Law caps annual withdrawals at 3% of estimated sustainable income, calculated over a rolling period. Since 2009, however, Parliament has consistently voted to lift or exceed the cap to finance state budgets. Withdrawals have regularly outstripped petroleum revenue inflows, drawing down the fund's principal. The Consultative Council and international observers have publicly warned that without new production, the fund risks exhaustion within a decade.

Timor-Leste is a signatory to the Santiago Principles via the IFSWF and an EITI member country. The fund publishes annual reports and audited financial statements, and its parliamentary oversight framework is among the more transparent in Asia. Primary gaps include infrequent reporting on fund size between annual statements and limited disclosure of individual external manager positions.