East Timor petroleum fund under review.

11/07/2008 22:07:56

East Timor's finance minister, Emilia Pires, has ordered a review of the management of the country's petroleum fund which provides most of the nation's income.

Our finance correspondent, Karon Snowdon, reports the sustainablity of the fund is under question.

The Petroleum Fund was established by law in 2005 to manage for future generations the only significant income producing resource for the nation - its share of the oil and gas resources of the Timor Sea.

The Fund is meant to provide income beyond the three decades of known oil reserves worth at most about $US15 billion dollars.

The bulk of the government's budget comes from the Fund, now valued at $2.6 billion.

Finance Minister Emilia Pires says she will receive a consultant's review of its management in two to three months.

The current investment that we have, even that conservative formula that is applicable at the moment, it will not be sustainable.

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