Timor-Leste's Performance on the Resource Governance Index
Timor-Leste received a "partial" score of 68, ranking 13th out of 58 countries. A very low Enabling Environment score offset "satisfactory" performance on the other components of the RGI.
(out of 58)
(out of 100)
|15||Institutional & Legal Setting||77|
|16||Safeguards & Quality Controls||70|
Institutional & Legal Setting (Rank: 15th/58, Score: 77/100) learn more
With a comprehensive legal framework and independent licensing process, Timor-Leste received a "satisfactory" score of 77.
The National Petroleum Authority (ANP) awards production-sharing contracts to companies through competitive public bidding rounds and regulates the sector.
Currently, all of Timor-Leste's oil and gas is produced in the offshore Joint Petroleum Development Area (JPDA). Government revenues from the area are received in cash rather than in kind, with a 10 percent share going to Australia under the Timor Sea Treaty. However, when production begins in Timor-Leste's Exclusive Zone, companies will be required to provide the government with in-kind oil payments for the domestic market.
The ANP supervises the marketing of petroleum produced in the JPDA and collects all "first tranche petroleum" payments, while the Finance Ministry collects taxes. All of Timor-Leste's petroleum revenues go into the Petroleum Fund, administered by the central bank.
The Petroleum Act guarantees public access to some industry information, but technical data and "trade secrets" remain confidential. Environmental and social impact assessments are not required, though companies must submit an environmental protection plan. Timor-Leste achieved compliance with the Extractive Industries Transparency Initiative in 2010.
Reporting Practices (Rank: 8th/58, Score: 82/100) learn more
Timor-Leste releases substantial data on many aspects of the hydrocarbon industry, earning a "satisfactory" score of 82.
Many, but not all, petroleum contracts are publicly available. The Petroleum Act requires extensive disclosure on licensing rounds, but the ANP has yet to release this information.
Finance Ministry budget reports include data on production volumes, prices, export values, and disaggregated resource revenue streams. The ANP also publishes considerable information on the petroleum industry, including data on reserves, production volumes, and investment, but these figures are not organized systematically. The central bank and the Finance Ministry publish Petroleum Fund receipts. The Finance Ministry's budget clearly delineates petroleum and non-petroleum revenues.
Safeguards & Quality Controls (Rank: 16th/58, Score: 70/100) learn more
Incomplete government monitoring but extensive audit requirements led to a "satisfactory" score of 70.
National law limits the discretion of the licensing authority and ensures that the licensing process is competitive and fair. Contract awards may be appealed. Parliament has no legal mandate to review contracts but has nevertheless taken an oversight role.
The government employs an external auditor to review revenues deposited into the Petroleum Fund. Audits are submitted to the Finance Ministry, which in turn provides reports on petroleum revenues to parliament, usually with at least a year's delay.
Enabling Environment (Rank: 38th/58, Score: 28/100) learn more
Timor-Leste's particularly poor performance on measurements of government effectiveness and the rule of law led to a "failing" score of 28, by far its lowest on any component of the RGI.
In 2011 the government created Timor-Gap Empressa Publico, an entirely state-owned company intended to participate in the country's oil industry, but not to monopolize it. Timor-Gap is not yet fully operational and, as of July 2012, had published no information on its activities.
Natural Resource Funds (Rank: 5th/23, Score: 83/100) learn more
In 2005 Timor-Leste created the Petroleum Fund to help preserve resource revenues for future generations. The Finance Ministry is responsible for the overall management of the fund, while the Banking and Payments Authority oversees operational management. The Petroleum Fund law includes rules governing deposits and withdrawals, and additional transfers from the fund must be approved by the legislature. Comprehensive monthly, quarterly, and annual reports on the fund's operations are available to the public, as are annual audit reports.
INSTITUTIONAL & LEGAL SETTING
SAFEGUARDS & QUALITY CONTROLS
To explore all data and compare country scores, use the RGI Data Tool.
Key Economic Indicators
|GDP (constant 2011 international $ billion)||0.4||0.5||1.1|
|GDP per capita, PPP (constant 2005 international $)||1,174||985||1,393|
|Oil and gas revenues (% total government revenue)||..||94|
|Extractive exports (% total exports)||..||0||..|
|Sources: Oil and gas revenue as share of total government revenue from the Economist Intelligence Unit and the International Monetary Fund. All other data form the World Bank.|