Timor-Leste Petroleum Fund

The Timor-Leste Petroleum Fund (Portuguese: Fundo petrolífero de Timor-Leste) is a sovereign wealth fund into which the surplus wealth produced by East Timor petroleum and gas income is deposited by the East Timorese government.[1]

The fund was established in 2005 with an opening balance of $205 million.[2] As of 31 December 2010, the capital of the fund was US$6.9 billion.[3]

The fund signed up to the Santiago Principles on best practices for managing Sovereign Wealth Funds and joined the International Forum of Sovereign Wealth Funds.[4] As a member it publishes how it adopts and implements the principles within its governance procedures. In December 2021 the fund had US$18.5 billion in assets under management.[5]

Finances

Earnings of the fund were around 4% in the 5 years to July 2011.[6] A key milestone was achieved in June 2014 when the equity allocation in the fund reached 40%. The Petroleum Fund returned 3.3% in 2014, or 2.5% after inflation. The fund's end-of-year balance in 2014 was $16.5 billion.[7]

Year	Balance in mil. USD-$	Revenues in mil. USD-$	Investment Returns in mil. USD-$	Withdrawals in mil. USD-$
2018[8]	15,804	447	–460	983
2020[9]	18,905	326.1	1,773	886.3

References

1. Petroleum Fund Annual Report 2008
2. "::. Abp | Bpa .::". Archived from the original on 2011-02-03. Retrieved 2011-02-18. Petroleum Fund of Timor-Leste
3. http://www.laohamutuk.org/Oil/PetFund/Reports/PFQR10q4en.pdf Petroleum Fund of Timor-Leste Quarterly Report 31 December 2010
4. International Forum of Sovereign Wealth Funds. "Our members". Retrieved 24 May 2017.
5. "Timor-Leste Petroleum Fund (Timor-Leste Petroleum Fund) - Sovereign Wealth Fund, East Timor - SWFI". www.swfinstitute.org. Retrieved 2021-12-31.
6. Dagens Næringsliv, 2011-07-30 page 24 by Morten Haabeth Grindaker
7. Petroleum Fund Annual Report 2014
8. Petroleum Fund Annual Report 2018
9. Timor Leste Petroleum Fund Annual Report 2020