London, July 8th (The Energy Circle) - On July 5th, Mozambique and Timor-Leste signed an important cooperation agreement as part of the Timorese president’s first visit to Mozambique.

During a ceremony at the Presidential Palace in Maputo, Mozambique's President Filipe Nyusi and Timor-Leste's President Jose Ramos-Horta formalized their commitment to promote bilateral ties. In total, three Memoranda of Understanding (MoU) were signed, with one focusing exclusively on the exploration of hydrocarbons and mining.

President Nyusi asked Timor-Leste to share its experience in managing sovereign wealth funds, a domain in which Timor-Leste shows great expertise. President Ramos-Horta detailed the impressive growth in the Timorese Sovereign Fund, which launched with US$200 million and has ballooned to nearly US$20 billion. Managed by the Central Bank, the fund serves as a model of fiscal prudence and effective resource allocation, while insulated from direct government access. This financial stability and strategic resource management reiterates the global attractiveness of Timor-Leste as an investment hub for oil and gas professionals.

President Ramos-Horta also called for the creation of a Mozambican embassy in Timor-Leste to further deepen ties between the two countries, which are both members of the Community of Portuguese Language Countries (CPLP).

After Mozambique, President Ramos-Horta will head to Angola to promote cooperation and bilateral relations with this resource-rich member of the CPLP.

The collaboration with Mozambique provides for enhanced exploration and development activities, with Timor-Leste bringing much needed experience and robust financial infrastructure to the east African country. As the global demand for energy resources surges forward, Timor-Leste exerts growing influence in the oil and gas sector, thus presenting an attractive opportunity for investors and energy industry experts alike.

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