Adapted from http://laohamutuk.blogspot.com/2010/11/national-oil-company-draft-law-is.html
Timor-Leste's State Secretariat for Natural Resources recently opened a brief public consultation on a decree-law to create PETRONATIL, a state-owned petroleum company. They hope that the Council of Ministers will approve it on 30 November, and the proposed 2011 General State Budget allocates two million dollars to get it started. La'o Hamutuk has many serious concerns about this proposed legislation, which we described in our submission yesterday to the State Secretariat for Natural Resources, which you can download from http://www.laohamutuk.org/Oil/PetRegime/NOC/LHSubPetronatil24Nov2010En.pdf .
Our submission discusses the following:
* National oil companies are dangerous, and we should learn from failures as well as successes.
* The public consultation process is inadequate.
* PETRONATIL should be established by Parliamentary law, not decree-law.
* PETRONATIL should serve the people of Timor-Leste.
* This Decree-Law must be written clearly.
* PETRONATIL should follow the rules for state agencies.
* PETRONATIL needs to be transparent and accountable.
* PETRONATIL should be designed to prevent corruption.
* PETRONATIL should not be given more power than it needs.
* PETRONATIL’s profits must be paid into the Petroleum Fund, not reinvested in the company.
* PETRONATIL should not be empowered to borrow or issue bonds.
For the draft laws and background information, go to http://www.laohamutuk.org/Oil/PetRegime/NOC/10Petronatil.htm.
For more information on the 2011 state budget, including budget documents and hearing schedules, go to http://www.laohamutuk.org/econ/OGE11/10OJE2011.htm
La'o Hamutuk (The Timor-Leste Institute for Development Monitoring and Analysis)
P.O. Box 340, Dili, Timor-Leste (East Timor)
Telephone: +670-3325013 or +670-734-0965 mobile
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