NIGERIA - Profile - Rilwanu Lukman.

A former oil minister and diplomat of Nigeria, Lukman was made top energy advisor to President Obasanjo in June 1999. But he has since continued to serve as OPEC secretary general. He will resign from the top OPEC post in September.

Lukman's advisory office is in the presidency at Abuja, a federal capital built by the military in the early 1990s. His role is important in that he is the one who brings the pressing petroleum issues to and prepares the main decisions for Obasanjo, though he is by no means equivalent to an oil minister. His powers are limited as Obasanjo retains the petroleum portfolio. But the president takes his advice on all matters pertaining to OPEC, relations with NNPC's main foreign partners and major energy issues.

In this position Lukman has succeeded Godwin Aret Adams. A respected technocrat and former head of NNPC, Adams was made top presidential advisor on energy in September 1998 by Gen. Abdulsalami Abubakar, who came to power as ruler after the death of military dictator Sani Abacha in June last year. Gen. Abubakar then sacked the entire cabinet of Abacha, including petroleum minister Dan Etete. The petroleum portfolio was left vacant and the sector was taken over by the ruler's office. President Obasanjo simply did the same but changed technocrats from Adams to Lukman.

Lukman was born in February 1938 at Zaria in the northern state of Kaduna. He received higher education in mining at the University of London from 1959 to 1962. He got a higher degree as a mining engineer from the University of Mining and Metallurgy in Loeber, Austria (1967-68).

In the military regime of General Ibrahim Babangida, Lukman served as minister of mines, power and steel from 1984 to 1985. In February 1986, he was made petroleum minister and held that post until February 1990. From 1986 he served eight consecutive terms as OPEC president. In March 1990 he became minister of foreign affairs. He lost that post after Babangida resigned in 1993.

Lukman was elected as OPEC's secretary general on Nov. 22, 1994. He succeeded Dr. Subroto, of Indonesia, whose term for three years had ended on June 30, 1994. Lukman was a compromise figure for that post, between two competing candidates - Hossein Kazempour Ardebili of Iran and Alirio Parra of Venezuela. Lukman was re-elected to a second term in 1997. (Now the competing candidates for the top OPEC post are Ardebili for Iran and Suleiman Al Herbish for Saudi Arabia).

As OPEC chief, Lukman was a key force behind the price defence deal that was first reached by Iran and Saudi Arabia in early 1999. This led to the March agreement between OPEC and four non-OPEC states on oil production cuts which, eventually, helped world crude oil prices to more than double from a level below $9/barrel in late 1998. Until he resigns in September, Lukman is also a member of OPEC's Market Monitoring Committee (MMC).

The MMC met in Vienna in late July and decided to recommend keeping OPEC's oil production quotas unchanged until end-March 2000. The member-states on the MMC are Iran, Kuwait and Nigeria, with Iranian Oil Minister Bijan Namdar Zanganeh being its current chairman. Lukman is one of the lobbyists for Venezuela's proposed OPEC summit which is to be held in Caracas in February or March 2000 and which is expected to extend the price defence agreement until end-2001.

Already from the day he was made top presidential advisor for energy in June, Lukman has maintained that Nigeria must comply with OPEC's output quota more effectively than in the past.

It was from Lukman's advisory office at the presidency that the government on July 6 announced the cancellation of 47 offshore E&P licences awarded controversially to local companies since 1995. These included 11 highly attractive deep-water blocks given in March 1999 to companies with links to the military. The 11 blocks had been the subject of keen interest among NNPC's main foreign partners, Shell, Mobil, Chevron, Elf, Agip and Texaco. Also cancelled were five blocks awarded earlier and one block given in May 1999 by the Abubakar government. The Department of Petroleum Resources had revoked 30 blocks given since 1995 because the licencees had failed to execute agreed work programmes within the first five years of their leases.

Lukman's office said in a statement on July 6 that the 17 blocks were awarded in 1999 without a public tender. It said the cancellation followed an "interim report" from a special panel chaired by prominent businessman Christopher Kolade (see below). It was revealed by independent sources that the companies affected had links to Gen. Abubakar and his No. 2 rear admiral Mike Akhigbe. Among the companies now trying to fight back through legal action against the government is Totex Oil Nigeria Ltd, chaired by retired general Anthony Ukpo who is said to have had links to the former ruler, and Amni Int'l which has military links and which is producing oil (see Gas Market Trends No. 6). Lukman's office later said new open tenders will be organised for the blocks, which will be offered to both foreign and local companies.

Like his predecessor Adams who favoured a complete overhaul of the petroleum industry, Lukman believes NNPC should be restructured and made a truly commercial enterprise. But he is not in agreement with Adams and others that NNPC should divest its controlling stake in the oil producing JVs. Nor is he keen on a rapid deregulation of the domestic fuels market.

In October 1987, Lukman became the first African recipient of the Imperial College of Science and Technology Fellowship Award. He also served as president of the African Petroleum Producers' Association, president of the Nigerian Mining and Geosiences Society and vice president of the Association of Geoscientists for International Development.