The Nation Newspaper

Tag: OPEC

  • OPEC imperiled

    •Congratulations to Madam OPEC President Alison-Madueke but no cheers

    If it had happened about a decade or so ago, the entire country would have rolled out the drums and danced into the night for an entire week, but the times have changed drastically. We speak of the election last week, of Mrs. Diezani Alison-Madueke, Nigeria’s Minister of Petroleum Resources as the president of the Organization of Petroleum Exporting Countries, OPEC.

    Though usually referred to as an election, in the real sense, it is a ceremonial appointment which is taken in turns by heads of member countries’ delegations. Delegations to OPEC’s meetings are led by each member-country’s oil minister. Last week at the 166th Meeting of the body, it was the turn of Nigeria’s head of delegation to emerge as president. Mrs. Alison-Madueke however, holds the singular honour of being the first female president of the 64-year-old OPEC, which has from inception been dominated by a powerful Arab oil bloc.

    We congratulate our elegant oil minister but at the same time, we feel sympathy for her while advising her jubilant associates and well-wishers that the occasion calls for no celebration. Doing so, we dare say, would amount to a public display of ignorance, if not buffoonery. The reasons for our assertion are easy to discern. First, OPEC which is a cartel of oil producers of non-industrialized countries has outlived its original purpose and therefore, is near-moribund.

    OPEC was founded as a counter-force to help regulate production among members in order to control world price of crude oil. It was a unified front in response to efforts by oil firms of the Western world to drive down the prices of crude oil. OPEC was effective in the 1970’s and 1980’s when two-thirds of the world’s oil reserves belonged to its members and members were responsible for about half of the world’s crude export.

    Recall the 1973 oil embargo by OPEC members against the United States and her European allies for supporting Israel during the Yom Kippur war against Syria and Egypt. The embargo had adverse effects on the US economy, leading to recession and forcing her government to initiate a series of drastic measures. Some of the outcomes of that altercation were that the US embarked on a massive reserve regime and a relentless drive to find viable alternative to fossil fuel.

    Today, the United States has enough oil reserve to power the entire world apart from her increased production. She also has a well-harnessed gas stock. But her triumph in shale fuel research is actually the real game-changer in today’s global energy politics. To understand the point, by the middle of the year, the United States transformed from a net importer of crude oil to a net exporter. In other words, she is capable of feeding most of the world with her stock of fossil fuel without broaching her gas and shale oil stock. It is reported that the United States will initially supply the world oil market with about 8mpd (million barrels per day).

    This is largely responsible for the crude oil glut in the market and the sharp fall in price. The immediate import of this is that OPEC stands damaged today; perhaps irretrievably. It is no longer a major supplier of crude – and it is becoming less valuable by the day. Saudi Arabia, the backbone of OPEC and still the largest producer, has enough deposit that she can afford to sell at a dollar a barrel. Besides, she has over the years, diversified her economy and built a very stable society and realigned her politics. OPEC would therefore have no significance to her today.

    What we are saying in essence is that OPEC, in the true sense of it, is moribund and our dear Diezani is actually presiding over a cadaver. At last week’s meeting, OPEC could not do anything about the plummeting oil prices. It is simply because she cannot.

    It is drowning countries like Nigeria that mismanaged their huge oil resources that are looking to OPEC to bail them out this on-rushing storm. Nigeria, particularly, has been outstandingly remiss; she is probably the only country among the OPEC lot that has no viable refineries and petrochemical complexes. Nigeria remains the joker among the OPEC bunch that still imports most of her petroleum product needs and – believe it or not – from non-OPEC countries.

    Our current OPEC president is not the cause of the rot but she has been spectacularly inept too since she took charge of the sector in 2011. The entire oil industry has been fractured, astoundingly corrupted and brought to a near disastrous collapse by Madam OPEC president.

    We warn that it is only logical that Nigeria stands today as imperiled as OPEC.  Yet here, we are celebrating a farce.

  • OPEC on diplomatic visits over oil price concerns

    The Organisation of Petroleum Exporting Countries (OPEC) producers are stepping up their diplomatic visits before the group’s meeting next week, potentially seeking a consensus on how to react to oil prices that have plunged to a four-year low.

    According to Bloomberg quoting the official Saudi Press Agency, Libyan Prime Minister Abdullah al-Thani flew to Riyadh at the weekend just as Iraqi President Fouad Masoum left the kingdom after a two-day visit where he met with King Abdullah, and Venezuela’s foreign minister and representative to OPEC, Rafael Ramirez held talks in Qatar as Saudi Arabian Oil Minister Ali Al-Naimi tours Latin America.

    The Saudis will not walk the road alone, they want to see everyone share the burden with them,” Kuwait-based analyst Kamel al-Harami said by phone. Saudi Arabia, the world’s biggest oil exporter, is trying to build consensus among fellow members of the OPEC before they meet on November 27 in Vienna, Austria.

    Brent crude extended losses below $80 a barrel, dropping to a four-year low amid signs that OPEC’s biggest members will refrain from reducing output to ease a supply glut. WTI settled at $77.18 last week, the lowest close since October 2011.

    Falling oil prices are straining state budgets among OPEC members, including Iraq’s government, which is leading a costly war against Islamist militants, and Libya that is struggling to keep crude output steady amid political divisions and violence.

    Saudi Arabia remains committed to seeking a stable oil price and speculation of a battle between crude producers has no basis, Al-Naimi said in Mexico after a visit to Venezuela.

    OPEC members Libya, Venezuela and Ecuador have called for action to prevent crude from falling further. Libya’s OPEC governor Samir Kamal said last month that the group must cut daily output by 500,000 barrels as the market is oversupplied by about 1 million barrels a day.

    Venezuela’s Ramirez discussed crude prices and stability of oil markets with Qatar’s Prime Minister Abdullah bin Nasser bin Khalifa Al Thani and Energy Minister Mohammed Bin Saleh Al Sada in Doha as part of a tour of oil-producing countries, Venezuela’s foreign ministry said in statement on website. Ramirez had visited Algeria, and is scheduled to travel to Iran and Russia, the ministry said.

  • OPEC may be forced to act on oil prices

    OPEC may be forced to act on oil prices

    Even with North America as a new driver of world oil prices, it may be the Organisation of Petroleum Exporting Countries (OPEC) that turns the tide.

    As West Texas Intermediate crude trades at $80 and Brent continues to slide toward $85, speculation is increasing that the OPEC will reverse course and cut production at its Thanksgiving meeting.

    Saudi Arabia surprised the market when it vowed to hold production levels, while giving price breaks to Asian customers, but the slide in prices may be too painful for other OPEC members, analysts say. OPEC meets on Nov. 27.

    “I think there’s going to be big downward pressure on prices into the OPEC meeting and the market is going to force their hand,” said Again Capital analyst John Kilduff.

    He said OPEC may react if WTI reaches $75 or lower. “I think it would stabilize (prices), but the U.S. shale numbers are unbelievable. We’re going to be pushing 10 million barrels next year. There’s been the questions in the market about oil field depletion, etc. but now there’s the realisation that it’s the real deal.”

    Goldman Sachs Sunday issued a new forecast for 2015 oil prices for WTI crude to fall to $75 a barrel and Brent to $85 a barrel in the first quarter of 2015, a reduction for both of $15 a barrel from its previous forecast.

    WTI could fall as low as $70 in the second quarter and Brent as low as $80, when Goldman expects oversupply would be the most pronounced, before returning to first-quarter levels.

    A combination of growing U.S. oil production, now at 8.9 million barrels a day, and weaker growth in global demand has created a supply glut in the Atlantic and plentiful supplies worldwide. Oil production in the U.S. has increased about 500,000 barrel a day, since the summer.

    “Oil production is going up in the U.S. over the next year, and the dilemma for OPEC is given the demand forecast, the U.S. and Canada are able to supply the increase in 2015, eliminating the need for OPEC to produce more oil. The increase in demand is going to be met by increases in Canadian and U.S. production, which leaves OPEC on the sidelines,” said Andrew Lipow, president of Lipow Oil Associates.

    Lipow said new, grassroots investment is affected in the U.S. at $80 to $90 a barrel. He said existing production would not be impacted by low prices until $35 to $40. Citigroup recently forecast that $50 is the level at which production growth would be stopped, and about a quarter of forecast production growth would be impacted at $70 a barrel.

    Saudi Arabia, in cutting prices instead of production, was attempting to preserve its market share.

    Break-even oil prices for Saudi Arabia, based on budget requirements are at $89 a barrel, but much higher for others like Iraq, which requires $114 a barrel or Iran, at $130 a barrel, according to Citigroup data.

    “I actually do think these oil prices are going to force OPEC to act,” said Lipow. “Even though Saudis and Kuwaitis could stand an extended period of low prices, they live in a difficult neighborhood and their neighbors cannot endure an extended period of low prices.”

    Some analysts believe Saudi Arabia, which produces at a much lower cost, could withstand much lower prices than the current break-even estimate.

    The Kuwait break-even is $44, and it is $71 for Qatar. But Venezuela is at $161 and Libya is at $185, according to Citigroup. Russia, not a member of OPEC, is at $105.

     

     

     

  • Oil glut beyond OPEC’s control

    Oil glut beyond OPEC’s control

    The supply side glut in the oil market combined with the decline in global demand makes it difficult for oil producers to effectively exercise any control over oil prices, according Seth Kleinman, Citi Energy Analyst.

    According to Hellenic Shipping News, even in the context of recent serious geopolitical issues that could potentially cause supply disruptions and high oil prices, the world is witnessing a decline in oil prices. Brent has traded since early July within the range of $95 to $110. It is hovering around $98 to $100 a barrel on the London-based ICE Futures Europe exchange.

    On the supply side a lot of excess stocks combined with new sources of production such as US shale oil, massive gas substitution are depressing the oil prices. Kleinman said the medium term outlook for oil demand is not encouraging as the emerging market demand growth, particularly from China is on a decline.

    The long held belief that emerging markets are perennial sources of oil demand is fast changing partly because of the changes in economic growth dynamics and partly because of massive energy substitution of natural gas — often obtained through the hydraulic fracturing of shale rock for oil, and fuel-efficiency mandates in many key countries.

    Kleinman said the prospect of oil demand hitting a plateau this decade looks increasingly possible than the market seems to think. The Shale boom in the US has already upended energy markets and it has largely accepted the fact that the spread between gas and oil will stay wide for the foreseeable future.

    The huge rush for substitution of oil with gas in the US, Europe and some of the leading emerging markets like China and Latin America is going to have a long-term impact on oil prices than previously anticipated.

    While European regulations are also putting pressure on its oil industry, even in China LNG substitution in automobile sector is happening on a massive scale. In February last year the European Commission issued draft legislation that would mandate LNG filling stations be located every 400km on the core trans-Europe highway network. This same legislation will mandate LNG filling stations be located at all 139 maritime and island ports in Europe, also by 2020.

    Kleinman said increased focus on fuel economy across the US, Europe, Japan and China have started impacting the oil demand. Research by Citigroup estimates that new vehicles’ fuel economy is increasing by about 2.5 per cent a year.

    Adding to the downward price pressure on oil will be the lack of incentive for Middle Eastern oil producers, particularly Saudi Arabia to cut production. Petroleum exports account for about 90 per cent of Saudi Arabia’s state budget. Saudi Arabia announced $130 billion of investment in 2011 to create jobs and a $500 billion plan infrastructure projects, making deep cuts to stabilise the market a difficult possibility.

  • Oil glut beyond OPEC’s control

    The supply side glut in the oil market combined with the decline in global demand makes it difficult for oil producers to effectively exercise any control over oil prices, according Seth Kleinman, Citi Energy Analyst.

    According to Hellenic Shipping News, even in the context of recent serious geopolitical issues that could potentially cause supply disruptions and high oil prices, the world is witnessing a decline in oil prices. Brent has traded since early July within the range of $95 to $110. It is hovering around $98 to $100 a barrel on the London-based ICE Futures Europe exchange.

    On the supply side a lot of excess stocks combined with new sources of production such as US shale oil, massive gas substitution are depressing the oil prices. Kleinman said the medium term outlook for oil demand is not encouraging as the emerging market demand growth, particularly from China is on a decline.

    The long held belief that emerging markets are perennial sources of oil demand is fast changing partly because of the changes in economic growth dynamics and partly because of massive energy substitution of natural gas — often obtained through the hydraulic fracturing of shale rock for oil, and fuel-efficiency mandates in many key countries.

    Kleinman said the prospect of oil demand hitting a plateau this decade looks increasingly possible than the market seems to think. The Shale boom in the US has already upended energy markets and it has largely accepted the fact that the spread between gas and oil will stay wide for the foreseeable future.

    The huge rush for substitution of oil with gas in the US, Europe and some of the leading emerging markets like China and Latin America is going to have a long-term impact on oil prices than previously anticipated.

    While European regulations are also putting pressure on its oil industry, even in China LNG substitution in automobile sector is happening on a massive scale. In February last year the European Commission issued draft legislation that would mandate LNG filling stations be located every 400km on the core trans-Europe highway network. This same legislation will mandate LNG filling stations be located at all 139 maritime and island ports in Europe, also by 2020.

    Kleinman said increased focus on fuel economy across the US, Europe, Japan and China have started impacting the oil demand. Research by Citigroup estimates that new vehicles’ fuel economy is increasing by about 2.5 per cent a year.

    Adding to the downward price pressure on oil will be the lack of incentive for Middle Eastern oil producers, particularly Saudi Arabia to cut production. Petroleum exports account for about 90 per cent of Saudi Arabia’s state budget. Saudi Arabia announced $130 billion of investment in 2011 to create jobs and a $500 billion plan infrastructure projects, making deep cuts to stabilise the market a difficult possibility.

  • OPEC delays decision on supply cuts

    Organisation of Petroleum Exporting Countries (OPEC) has yet to decide to cut its production target, the United Arab Emirates (UAE’s)  energy minister said, as crude prices extend a slide since June amid a boom in United States (U.S.)  shale oil and signs of slower demand growth in China.

    All 12 members of the oil cartel must agree before any decrease in its official limit of 30 million barrels a day, the U.A.E.’s Suhail Al Mazrouei said,  after OPEC’s Secretary-General said it may lower the ceiling in 2015.

    The OPEC, supplier of about 40 per cent of the world’s oil, faces growing competition from North American shale deposits, even as economic growth cools in China, the world’s second-biggest oil consumer after the U.S. OPEC’s monthly report on September, showed demand for its oil will decline to 29.2 million barrels a day in 2015 from 29.5 million this year. The group will review its target when it meets next on November, 27 at its Vienna headquarters.

    “It’s not a one-man decision, “Al Mazrouei told reporters in Abu Dhabi. “It’s a decision by all the ministers when we meet.”

    Brent crude, a benchmark for more than half of the world’s oil, has dropped 16 per cent from a June 19 peak this year, and was at $97.22 a barrel on the ICE Futures Europe exchange in London. U.S. West Texas Intermediate crude futures have fallen 15 per cent since June 20 and were at $91.05 in New York.  

    OPEC may reduce its official daily limit by 500,000 barrels to 29.5 million next year, the group’s Secretary-General Abdalla El-Badri declared on September 16.  El-Badri, who often speaks for the group, specified that this was an outlook, not a decision. He attributed the slide in crude prices to seasonal demand and predicted a recovery by year-end.

    “We still have almost two months before the next meeting,” the U.A.E.’s Al Mazrouei said. “We will make sure that our supply meets demand.”

    Growth in China faces downward pressure, that country’s Finance Minister, Lou Jiwei said at the Group of 20 meeting in Cairns, Australia, according to a statement on the website of People’s Bank of China. China will account for about 11 per cent of global oil consumption this year, compared with 21 per cent for the U.S., according to the International Energy Agency in Paris.

    OPEC will base its output decision in November “on what’s required” from its members, Al Mazrouei said. “We are one third, and there are two thirds of production coming from elsewhere, so they have a responsibility as well,” he said, referring to producers outside the group.

    Other OPEC officials, including Saudi Arabian Oil Minister, Ali Al-Naimi, have said they see no urgent need to respond to oil’s drop. Prices “always fluctuate and this is normal,” Naimi told reporters in Kuwait, while the  Kuwaiti Oil Minister Ali Al-Omair said oil will recover as demand for winter fuels climbs..

    The group’s members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Vene.

  • Sanction-stricken Russia partners Opec

    The world’s largest crude producer, Russia, is warming up to Organisation of the Petroleum Exporting Countries (OPEC) — finally.

    Russian Energy Minister Alexander Novak called on OPEC Secretary-General Abdullah Al-Badri and other officials in Vienna.

    Although the yearly meeting between Russia, the world’s largest producer and OPEC representing exporters controlling some 40 per cent of the global oil market, was planned much in advance, the timing and the significance of the meeting was not lost upon pundits.

    Russia has been reluctant to publicly coordinate moves with other producers. And though there has been no official acknowledgement of any such possibility, yet a Reuters report quoting Russian government officials did indicate that “the talk (within the Russian energy ministry) of closer cooperation with OPEC on prices have long been there.”

    Russia has had a bumpy relationship with OPEC. In fact, Moscow has been striving to increase its markets share — at the expense of OPEC. Political developments, concerning Syria and Iran, also did not help bringing the two closer.

    But a change of heart seems in offing, as sanctions, imposed by the United States and European Union after the annexation of Ukraine in March and tightened since then over Moscow’s support to separatists, is appearing to bite.

    Russian economic growth is ebbing fast and is expected to be just 0.4pc at best this year, with recession a possibility, if the West takes more measures against Moscow.

    Russia’s currency too has fallen to a historic low against the dollar — jacking up the price Russians must pay for many imports, from vegetables to luxury goods.

    Russian budget projects that the economic fallout of the sanctions will result in a revenue shortfall of nearly two trillion rubles ($52 billion) over the next two years.

    Russian reliance on its oil exports is well known. Hydrocarbon exports revenues account for almost 50pc of its budget. Already squeezed by Western sanctions over Ukraine and balanced on the edge of recession, melting crude markets and the growing squeeze on oil revenues is adding another dimension to Russian woes.

  • Brent oil extends two-month slump amid OPEC expansion

    Brent oil extends two-month slump amid OPEC expansion

    Brent crude extended a two-month slide as Organisation of Petroelum Exporting Countries (OPEC’s) production was seen increasing and manufacturing gauges in Europe and China missed estimates. West Texas Intermediate fell in New York.

    Futures slid as much as 0.6 per cent in London, having retreated more than $9 in July and August. OPEC boosted output by 891,000 barrels a day to 31 million in August, the highest level in a year, estimates compiled by Bloomberg show. Purchasing Manufacturing Indexes for Germany, Italy, the U.K. and China all came in below estimates for August. Floor trading in the U.S. is closed for the Labor Day holiday today.

    “Those disappointing PMI numbers are helping push oil prices lower,” Michael Hewson, a London-based analyst at CMC Markets Plc, said by e-mail. “Lower demand against expectations of higher production is helping cap the upside.”

    Brent for October settlement dropped as much as 62 cents to $102.57 a barrel on the London-based ICE Futures Europe exchange and was at $102.63 as of 4:32 p.m. local time. The volume of all futures traded was about 58 percent below the 100-day average for the time of day. Prices decreased 2.7 percent in August and 5.6 per cent in July, the longest monthly falling streak since one that ended in May last year. Brent is down 7.4 per cent this year.

    WTI for October delivery slid as much as 44 cents to $95.52 a barrel in electronic trading on the New York Mercantile Exchange. Transactions will be booked tomorrow for settlement purposes. The European benchmark crude traded at a premium of $7.01 to WTI on ICE, compared with $7.23 on Aug. 29, which was the narrowest closing level since Aug. 14.  

    Nigeria, Saudi Arabia and Angola led production gains among OPEC members last month as new deposits came online, security improved and field maintenance programs ended, according to the Bloomberg survey of oil companies, producers and analysts. Iran and Venezuela were the only members to record reduced output.

    “Representatives of OPEC countries have been surprisingly quiet following the $10-per-barrel drop in oil prices over the last two months,” JBC Energy GmbH, Vienna-based analysts, said in a report today. The organization will contemplate output cuts in the coming months as Saudi Arabia’s demand for direct-burning of crude slides and Asian refineries seek less feedstock from the Middle East, JBC said.

  • FUTA students arrested for OPEC scholarship scam

    FUTA students arrested for OPEC scholarship scam

    Four graduates and two undergraduates of the Federal University of Technology Akure, Ondo State have been arrested for alleged fraud by the police.
    The suspects are Falade Oluwapelumi Ayotunde (25), Asaolu Victor (25), Awote Temitope Emax (27), Fajobi Olalekan (27) Bolatiri Emmanuel Onaopemipo (25) and
    Adebomi Oluwatosin (26).
    They were arrested by operatives of Police Special Fraud Unit (PSFU) for alleged internet fraud
    The suspects were also accused of being specialist in the unauthorized design of organisation’s websites and using them to defraud unsuspecting members of the public.
    Police alleged that the suspects have defrauded their victims of up to over N5million .
    The suspects were arrested following a petition which PSFU received on August 22, 2013,from OPEC FUND for International Development.
    Police said the petitioner had alleged that a website designed as “OFID Scholarship Website” with OFID name and logo has been used to defraud innocent Nigerian applicants.
    On the website, applicants were required to pay N2,500.00 as application fee and over 2,000 applicants responded and paid the fees through the First Bank Account Number 2020874607 and Access Bank Account Number 0056941009 with the name OFID WSAS NG.
    The petitioner stated further that it was one of the victims that contacted OFID via facebook, accusing OFID of being complicit in the fraud.
    PSFU spokesperson, Ngozi Isintume- Agu, a Deputy Superintendent told The Nation that immediately the petition was received, operatives of the Cybercrime Section of the Unit swung into action and the mastermind of the fraud, one Falade Oluwapelumi Ayotunde was arrested.
    She said: “His arrest led to the arrest of five other syndicate members. Police investigation so far revealed that over 2,000 applicants paid the sum of N2,500.00 each into the two banks provided by the suspects and the principal suspect is the only signatory to both accounts”.
    Ayotunde is a from Akure, Ondo State and a 500Level Estate Management undergraduate student of FUTA.
    Police said the suspect has made a confessional statement.
    According to his statement, Ayotunde confessed that he designed the website of OFID WSAS (OPEC Fund for International Development for World Student Aid Scholarship) in June, 2012.

  • Ex-Oil Minister Lukman is dead

    Ex-Oil Minister Lukman is dead

    Former Organisation of Petroleum Exporting Countries (OPEC) Secretary-General Alhaji Rilwanu Lukman is dead.

    The late Dr. Lukman, also a former Petroleum Minister, died in Vienna, Austria. He was 75.

    Details of his death were not clear yesterday.

    President Goodluck Jonathan is leading a rain of tributes on the engineer.

    Senate President David Mark, House of Representatives Speaker Aminu Tambuwal and former Vice President Atiku Abubakar have also paid tributes.

    The late Lukman steered OPEC through the 1997-1998 Asian financial crisis when crude fell to $10 a barrel. He presided over a record number of OPEC conferences and was the group’s secretary-general for six years, until 2000. He was Nigeria’s Oil minister from 1986 to 1990 and for two-years from 2008.

    Born in Zaria, on August 26, 1938, the late Lukman trained as an engineer with university degrees in both Nigeria and Britain.

    He worked under four leaders either as minister or energy adviser in more than two decades until he left office in 2010.

    Jonathan expressed sadness and a feeling of great national loss over Lukman’s death.

    Jonathan, in a statement by his Special Adviser on Media and Publicity, Dr. Reuben Abati, commiserated with the former minister’s family, the government and people of Kaduna, his friends, associates and all those he mentored in the domestic and global oil industry.

    The statement reads: “As Alhaji Lukman’s soul returns to its maker, President Jonathan joins all who knew him in giving thanks to God Almighty for bestowing him on the nation and for the great intelligence, integrity, competence and humility with which he distinguished himself in all his national and international assignments.

    “Nigeria, the President firmly believes, will always owe a huge debt of gratitude to the late Petroleum Minister for his very significant contributions to the development of the country’s oil and gas industry, and for serving with acclaimed distinction as the nation’s representative at the helm of OPEC affairs over many years.”

    Senate President David Mark yesterday described Lukman’s death as a huge loss to Nigeria.

    The Senate President said: “As a public servant, he was extra-ordinary. His excellent performance as the then petroleum minister earned him a higher responsibility to become OPEC secretary-general.

    “As OPEC Secretary General,  Lukman demonstrated competence, excellence and high sense of wisdom before  the international community and indeed raised the reputation of Nigeria as a strategic and important global player, especially in the oil and gas sector.

    “Lukman unarguably left a positive footprint on the sands  of time. No doubt, the nation owes him a great deal of gratitude.”

    Tambuwal expressed shock and sadness over Lukman’s death.

    In a statement by his Special Adviser (Media)  Imam Imam, Tambuwal described the deceased as a thorough-bred technocrat who served his country diligently at home and abroad.

    He said: “Lukman was a pioneer authority whose deep knowledge of the petroleum and gas sub-sector led to the formulation of various policies that have impacted positively on Nigeria.

    “He was one Nigerian who is respected globally for his diligence, creativity, honesty and commitment to duty. We will miss a global ambassador who did his best for his fatherland whenever called upon to serve.

    “I wish to extend my sympathy and that of the House of Representatives to Dr. Lukman’s family, friends, colleagues and associates. May the Almighty Allah give them the fortitude to bear the loss.”

    Atiku described Lukman as “the best oil minister Nigeria ever had”.

    “I will describe (Rilwan) Lukman as the best oil minister we ever had, given his unmatched knowledge of the industry and the integrity with which he ran the ministry,” the statement quoted Atiku as saying.

    Kaduna State Governor Ramalan Yero has expressed profound grief.

    Jamaatul Nasril Islam (JNI) is shocked by the sudden demise of Lukman.

    Yero, in a statement by his spokesman Ahmed Maiyaki, described the demise of Lukman as a great loss not only to Kaduna State and Nigeria but the entire World.

    “Lukman was a nationalist, who dedicated most part of his lifetime working for the advancement and economic development of Nigeria. Future generations of Nigerians will remember him as an astute administrator that contributed immensely to nation building,” he said.

    JNI Secretary-General, Dr. Khalid Abubakar, said the Muslim community received the sad news with shock because his death had created a vacuum that will be difficult to fill.