The Petroleum Fund of East Timor experienced a slight contraction during the first quarter of 2026, ending the period with a total value of $18.31 billion. According to the quarterly report released today by the Central Bank of East Timor (BCTL), this represents a $300 million decrease from the $18.61 billion valuation recorded at the close of 2025.
The decline in capital is primarily attributed to significant outflows outpacing the current incoming revenue from the oil and gas sector. During the first three months of the year, gross inflows from royalties and taxes amounted to a modest $4.5 million.
In contrast, total outflows reached $204.18 million. The bulk of these expenses—$200 million—consisted of direct transfers to the State Budget to fund government operations, while $4.18 million was allocated to management costs.
Since its establishment in 2005, the Petroleum Fund has served as the backbone of the Timorese economy. Managed by the BCTL, the fund has accumulated total revenues of approximately $25.28 billion over its lifetime.
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Investment returns have contributed an additional $12.03 billion to the portfolio. However, the high level of dependence on the fund to finance the nation’s General State Budget is evident in the historical data, which shows that $18.86 billion has been withdrawn since the fund’s inception.
As the nation looks toward the remainder of 2026, the fund’s performance remains under close scrutiny. Under Timorese law, all transfers from the Petroleum Fund must receive formal approval from the National Parliament, ensuring legislative oversight of the country’s primary financial reserve.
