Aust: East Timor Petroleum Fund Growing Steadily
East Timor Petroleum Fund Growing Steadily
I welcome the East Timorese Government's recent announcement that the balance of its newly-established Petroleum Fund has reached around $330 million.
The Petroleum Fund is structured to build on international best practice for transparency, accountability and prudent management of petroleum wealth. It should contribute to strong economic growth and improved government services and infrastructure in East Timor.
The Fund's balance is derived mainly from petroleum activities in the Australia-East Timor Joint Petroleum Development Area (JPDA). Under the 2002 Timor Sea Treaty, Australia agreed that East Timor would receive 90 per cent of the petroleum revenues from the JPDA.
East Timorese Government revenues from the JPDA could deliver around $15 billion to East Timor over the next 20 years, averaging around $2 million per day.