Prime Minister Attends Seminar on Prudent and Sustainable Management of the Petroleum Fund in Bangkok
On October 6th, 2026, in Bangkok, Thailand, Prime Minister Kay Rala Xanana Gusmão participated in a seminar on the prudent management of the Petroleum Fund, organised by the Ministry of Finance in joint collaboration with the Central Bank of Timor-Leste (BCTL), with the participation of national and international experts in finance and investment.
The seminar, held on October 6th and 7th, aimed to analyse the Petroleum Fund's sustainability, fiscal and investment strategies, and the challenges of long-term asset management.
At the seminar’s opening, the Prime Minister highlighted the Petroleum Fund’s role in financing national development since the restoration of independence and called for reflection on its future management, given declining petroleum revenues, and the current international economic context.
“We are now facing a period of concern because [the Fund] is gradually being depleted and we do not know what uncertainties the current world holds. I am grateful that we are here together to reflect—drawing on your knowledge and experience—and to help find the best way to manage our Petroleum Fund prudently,” said the Prime Minister.
The Head of Government also said the work will enable a more detailed analysis of the Fund’s sustainability, the impact of projects funded by its resources, and the fiscal strategy.
The Minister of Finance, Santina José Rodrigues F. Viegas Cardoso, highlighted the fiscal and developmental dimensions of the Petroleum Fund's sustainability.
“We all know that the Petroleum Fund has been central to financing Timor-Leste’s development and continues to fund a large share of the General State Budget. Therefore, its sustainability is not merely an investment matter but also a fiscal and development issue for the Government,” stated the Minister.
The Petroleum Fund framework was established to balance the needs of present and future generations, with the Estimated Sustainable Income (ESI) serving as the benchmark for sustainable withdrawals.
The Minister of Finance noted that the investment strategy must preserve the Fund’s purchasing power over the long term and pointed out that, in recent years, withdrawals have exceeded the ESI amid significant reductions in petroleum revenues.
“The Fund has performed better than expected. Petroleum revenues and investment returns exceeded projections, while withdrawals were lower,” she stated.
As part of the Government’s priority to ensure the prudent management of the Petroleum Fund, options for a gradual fiscal transition are under review, guided by rules and principles designed to promote the Fund’s sustainability.
The Governor of the BCTL, Hélder Lopes, explained that the Petroleum Fund Law establishes the Investment Advisory Council, which advises the Minister of Finance on the management and investment of the Fund’s resources.
According to the Governor, the Council holds an annual working seminar, and this year’s edition will take place in Bangkok during the Prime Minister’s official visit to Thailand.
During the sessions, the Ministry of Finance presented the current status of the Petroleum Fund, including trends in revenues from oil and gas production, investment returns, and withdrawals. The BCTL also presented analyses to support the definition of the Fund’s investment strategy.
“Prime Minister Xanana Gusmão presented his vision for how we should manage our Fund, followed by the Central Bank’s presentation, and provided guidance to help us conduct a better analysis, with a view to preparing material for the Minister of Finance and the Prime Minister himself, which can be used in policy formulation,” stated Hélder Lopes.
The Petroleum Fund's balance is currently nearly US$19 billion.
The seminar also featured presentations by international experts on investment, capital mobilisation, and financial sustainability, as well as shared experiences from Australia and Norway in sovereign wealth fund management.
The Prime Minister was accompanied by Timor-Leste’s Ambassador to Thailand, Francisco Tilman Cepeda, and by the Prime Minister’s Chief of Staff, Elizabeth Exposto.
