All of Timor-Leste’s oil and gas revenues are deposited in the Petroleum Fund. A majority is invested abroad in financial assets. In 2018 the Fund’s balance has decreased USD 996 million (from USD16,799 million in 2017 to USD15,804 million). 

Petroleum revenues and investment returns contributed 447 million USD  to the Fund in 2018, according to the latest EITI report. The total withdrawal of 982 million USD from the Fund was used to finance the Government’s budget. 

The implications for the Petroleum Fund’s investment strategy are carefully considered and are summarized in the Petroleum Fund’s Annual Report section “the advice from the Investment Advisory Board”. The Annual Reports are published on the Ministry of Finance’s website. 

Like other reports, the latest (2018) report provides recommendations to improve transparency in the sector.

These include the establishment of a database of all extractive companies operating in the oil sector, advancing on beneficial ownership disclosure and mainstreaming, addressing confidentiality provisions in PSCs and the enactment of an EITI Law.

The EITI encourages multi-stakeholder groups to explore innovative approaches to make the EITI more relevant and useful.

The EITI process in Timor-Leste has been useful in disclosing the status of the Petroleum Fund and how it is transferred to the national budget. Timor Leste is considering moving towards mainstreaming of EITI data and has worked with the International Secretariat in conducting a feasibility study for mainstreaming. The  government maintains a Transparency Portal which links EITI implementation to wider transparency and accountability in the country. This includes a Budget Transparency Portal which gives oversight to budget expenditure. Up-to-date information on the legal framework, licensing, contracts, production, social expenditures and non-tax revenues is also available through the website of the ANPM. The Petroleum Fund website contains quarterly reports on revenues and the overall status of the fund, as well as annual reports that include budget allocations. Timor Gap’s website has information on the financial situation of the company as well as other activities. 

Timor-Leste joined the EITI in 2008. 

While Timor-Leste was suspended on 1 March 2017 for failing to publish the 2014 EITI Report by 31 December 2016, the suspension was lifted on 29 June 2017after the publication of the missing report. 

In January 2017, Timor-Leste was found to have achieved meaningful progress in implementing the EITI Standard and the MSWG was given until 11 April 2017 to submit an action to plan to address the corrective actions relating to industry engagement and civil society engagement. On 14 February 2018, the EITI Board found that Timor-Leste addressed all corrective actions and has made satisfactory progress in implementing the 2016 EITI Standard.  

View more information under the Validation section of this page or go to the Board's decision in full. 

The MSWG's work plan contains the following objectives:

1. To ensure the publication of EITI Report in a timely manner and in accordance with EITI Standard 2019;
2. To encourage discussions on transparency in public expenditures, including investment decisions focus on economic diversification;
3. To encourage discussions on legal framework and maintain contract transparency within extractive industries and other revenues generated in Timor-Leste; and
4. To enhance EITI institutional development include capacity building for MSWG and National Secretariat members

Governance

The Ministry of Petroleum and Mineral Resources oversees EITI implementation in Timor-Leste. A list of MSWG members is available in the 2018 annual progress report of Timor-Leste EITI. While no changes in law were needed for EITI to take place in Timor-Leste, the MSWG recommends enacting an EITI law.

Name of National Coordinator: 

Ms Elda Guterres da Silva

Ministries involved

• Minister of Petroleum and Mineral Resources
• Ministry of Finance
• National Petroleum and Mineral Authorities (ANPM)

Timeline

Timor-Leste was found to have made satisfactory progress in meeting the EITI Standard on 14 February 2018. The country was previously found to have made meaningful progress on 11 January 2017 during the First Validation. Timor-Leste took corrective actions on a number of requirements and achieved satisfactory progress during the Second Validation. Timor-Leste's Re-validation will commence in July 2021. 

Timor-Leste's progress by requirement can be found in the scorecards below.