Francisco Miranda Branco, the Deputy Chair of Fretilin, who was amongst the Fretilin members who opposed the law change when it was voted in parliament December 2018, announced a letter had been submitted to the High Court in parliament on Friday.
Some 23 members of the Fretilin and DP party have confirmed they signed the letter.
Branco said the signatories were “concerned” about the sustainable use of Petroleum Fund under a decree change.
Opposition parties have said changes to the Petroleum Activity Regulation (LAP) could dilute the difference between financial assets and other assets.
The law change would also remove a 20 percent cap on state participation in oil projects, allowing projects to bypass approvals by parliament.
The request came while the government was continuing to face questions from opposition members about the financial security its oil and gas industry development plans, and while parliament voted Friday to cap the maximum amount to be withdrawn from the Petroleum Fund at US$1,194.4 million.
Previously, the President of the Republic Francisco Lu Olo Guterres directly challenged the law change, saying in a statement on 14 December that he vetoed the decree to “prevent the over-stretching of the Petroleum Fund’s direct investment rules and policies.”
Arao Noe, the President of National Parliament, confirmed a letter had been sent to the High Court and a response was expected in 10 days.
Sources close to Dili believe hold-ups to the law change could potentially delay the government’s $650 million buyout of ConocoPhillips’s and Royal Dutch Shell holdings in the Greater Sunrise gas project.
Noe said securing funds to pay for the Sunrise interest shares was critical to avoid missing the March 2019 payment deadline.
In November, Timor-Leste government announced an agreement to buy Shell’s 26.56 percent staking in the Sunrise project for US$300 million, after ConocoPhillip’s agreed in October to sell its 30 percents stake for US$350 million.
The Sunrise interest purchases are subject to funding approval by the Timor-Leste Council of Ministers and parliament, as well as regulatory and other approval.
