One Year Remembrance
By Yange Ikyaa
In the last week of May 2023, Late Mohammad Sanusi Barkindo, Former Secretary General of the Organization of Petroleum Exporting Countries (OPEC), was honoured by the Federal Government of Nigeria, when he was conferred posthumously with the title of Commander of the Order of the Federal Republic (CFR). The late OPEC scribe was honoured along with some eminent Nigerians in a special ceremony to mark the end of President Muhammadu Buhari’s eight years tenure.
Others who bagged the CFR honours award were Bisi Akande, Former Osun State Governor; Olusegun Osoba, Former Governor of Ogun State; Herbert Wigwe, Managing Director of Access Bank; Maman Daura, and Hadi Sirika, the immediate past minister of aviation. Also among them were Supreme Court Justices and Mr. Godwin Emefiele, who was Governor of the Central Bank of Nigeria (CBN) at the time.
The National Honours are a set of orders and decorations conferred upon Nigerians and allies of Nigeria every year. They were instituted by the National Honors Act No. 5 of 1964 during the First Nigerian Republic to honour Nigerians who have rendered service to the benefit of the nation and its people.
This honour now accorded Dr. Barkindo, who died on July 5, 2022, could only be appropriately described as well deserved, considering the extent to which he had served Nigeria with distinction and dedication throughout his lifetime. The Federal Government therefore deserves commendation for doing so, but this has even created more opportunities for doing more by going just an extra mile forward to name any of the country’s petroleum-related institutions after him.
Valuechain had earlier reported in October 2022 that the Nigerian government had shockingly forgotten Barkindo, one of the finest brains and public servants to have emerged from the country just three months after he died. The report was a response to a list released then by the Federal Government, which was made up of 437 high-achieving Nigerians to be conferred with National honours, and on which Barkindo’s name was conspicuously missing.
This set of qualification criteria for receiving Nigeria’s national honours made it even more difficult to rationalize why Barkindo’sname was missing on the list of honourees that October, on which five persons were listed for Grand Commander of the Order of the Niger (GCON), 54 for Commander of the Order of the Federal Republic (CFR), and 67 for the Commander of the Order of the Niger (CON).
Among the five individuals that received the second highest national honour, Grand Commander of the Niger (GCON). They included Ngozi Okonjo-Iweala, Director-General of the World Trade Organization; Amina Mohammed, Deputy Secretary-General of the United Nations; Ahmed Lawan, the then President of the Senate; Olukayode Ariwoola, Chief Justice of Nigeria; and Tanko Muhammad, a Former Chief Justice of Nigeria. However, it was a huge surprise to many when they discovered that Dr. Mohammad Sanusi Barkindo wasn’t in this category considering the fact that he made Nigeria more proud than all the personalities on this list.
Reacting to the list when it was released in October 2022, Valuechain argued that it was rather shocking that President Muhammadu Buhari, who was then in power and had described Barkindo as “a worthy ambassador of the country” just few hours before his death on July 5, 2022, when the late OPEC scribe paid the former President a visit at presidential villa, would easily forget to include him in a list of almost 500 Nigerians that were deemed fit to be honoured by the country, either alive or posthumously.
Barkindo had served as OPEC’s Acting Secretary General in 2006. He also led the Nigerian National Petroleum Corporation from 2009 to 2010 and headed Nigeria’s Technical Delegation to the United Nations climate negotiations, beginning in 1991.
A few months before his demise, Barkindo was received by the President of the Bolivarian Republic of Venezuela, Nicolas Maduro Moros, at the Miraflores Palace in Caracas, the nation’s capital, where they held a working meeting to discuss developments in the international oil market at the time.
President Maduro also presented Barkindo with the highest civilian honour in Venezuela, the Order of General Francisco de Miranda, First Class. The award recognized Barkindo’soutstanding stewardship of OPEC for the last six years. The ceremony was televised live by the Venezuelan national Television and attended by high-level Venezuelan dignitaries and members of the diplomatic corps.
The Order of Francisco de Miranda is conferred by the Bolivarian Republic of Venezuela in memory of Francisco de Miranda, Venezuela and Latin American independence hero, who is considered one of the most influential Venezuelans in modern history. This national honor recognizes Venezuelan citizens and foreigners who have made an indelible contribution to the progress of the country, exemplifying outstanding merits.
President Maduro praised Barkindo as an ‘exceptional leader,’ who had been instrumental in navigating the oil industry through two oil price cycles: the 2014-16 downturn caused by supply outpacing demand and the 2020 contraction of demand due to the COVID-19 pandemic.
Remembering the OPEC icon
Nigerians and the global energy community were thrown into shock and grief following the death on July 5, 2022 of His Excellency Dr. Mohammad Sanusi Barkindo in Abuja, at the age of 63, just days before he was set to finish his term after six years as Secretary-General of the Organisation of the Petroleum Exporting Countries (OPEC), headquartered in Vienna, Austria.
Barkindo was born on April 20th, 1959 in Yola, Adamawa State. He earned a BSc degree in Political Science from Ahmadu Bello University (1981); Post Graduate Diploma in Petroleum Economics from the University of Oxford, United Kingdom (1988); MBA in Finance and Banking from Washington University, United States (1991). He was a Fellow at George Mason University, United States, where he undertook research in energy, climate change and sustainable development. Barkindo was a recipient of an Honorary Doctor of Science degree from the Modibbo Adama University of Technology, Yola, Adamawa State.
Early career
Barkindo started his career at the Nigerian Mining Corporation in Jos, where he rose to the level of Principal
Administrative Officer (1982-85). He was Special Assistant to the Minister of Mines, Power and Steel, Lagos (1984-86); and Special Assistant to the Minister of Petroleum Resources and Head, Office of the Chairman of the NNPC (Nigerian National Petroleum Corporation) Board, Lagos (1986-89). In 1990, Barkindo served on secondment as Special Assistant to the Minister of Foreign Affairs, Lagos. His career at the NNPC started in 1992, as Head of International Investments.
During his time at the NNPC, Barkindo served the organisation in various capacities including being President of Duke Oil; General Manager, NNPC London Office (1993-97); Deputy Managing Director/CEO, Nigerian Liquified Natural Gas (2005). Barkindoalso served on several Boards of NNPC investee companies, such as banks, oil service companies, international trading companies, etc until 2010, when he left the organisation after having served as Group Managing Director/CEO.
Before his appointment as Secretary General of OPEC in 2016, Barkindo held several positions within OPEC. He was a Nigerian Delegate to OPEC Ministerial Conferences (1986-2010); served as Nigeria’s National Representative on OPEC’s Economic Commission Board (1993-2008); served as Acting OPEC Secretary General (January-December 2006); Nigeria’s Governor for OPEC (2009-10); and served as Ad hoc OPEC Governor at various times. Barkindo was also involved in other OPEC activities including being Chairman of the OPEC Task Force of the 15th Session of the United Nations Commission on Sustainable Development (UNCSD); spearheaded OPEC/European Union dialogue on Energy Markets, Taxation and Environment; was an architect of the first Long Term Strategy at OPEC; Founder delegate to the formation of the African Petroleum Producer’s Association (APPA), in Algeria (1986) and Delegate to the APPA Ministerial Conferences (1987-2010); and Pioneer Member of the International Energy Forum (IEF), Saudi Arabia, where he helped strengthened and consolidated OPEC/non-OPEC cooperation and dialogue.
He began his tenure as Secretary-General on August 1, 2016, and was reappointed for a further three-year in 2019.
His second term was to expire on 31st July 2022, but he died on 5th July.
OPEC legacies
Since taking the helm as Secretary-General of OPEC in 2016, Barkindo oversaw tumultuous times for the oil producer group, which witnessed volatile markets rocked by historic events including the Covid-19 pandemic, the creation of the OPEC+ alliance with Russia and other non-OPEC states, and Russia’s invasion of Ukraine.
Perhaps Barkindo’s most profound achievement was the formation of OPEC+ in late 2016. The OPEC+ includes all 13 member countries of OPEC plus 10 non-OPEC countries, wherein the latter group includes Russia as one of the world’s top oil exporters. As an alliance group, the OPEC+ member countries collectively agree on how much oil to produce, which directly influences oil supply in the global market at any given time, while tending to maximise profitability. The creation of the OPEC+ coalition a few months after his appointment as head of the organization, ushered a new, unprecedented era for the organization and once-unimaginable partnerships with non-member countries including Russia. In less than a year following his appointment, H.E. Barkindo took the organization to greater heights, uniting global energy producers in a feat of diplomacy.
Following his reappointment in 2019, Barkindo led the organization through one of the world’s biggest crises: the COVID-19 pandemic. His second term as Secretary General saw the leader navigate through production cuts, global oil price fluctuations and never-before-seen geopolitical tensions that brought significant impacts to producing nations worldwide. In his position, H.E. Barkindo was instrumental, often considered key for easing tensions and strengthening relations across the alliance.
Last OPEC moments
Till he drew his last breath, Barkindo remarkably remained relentless in consolidating and solidifying the position of the producers’ bloc in the scheme of international energy diplomacy. There appeared no respite for the late OPEC scribe in the face of the prevailing market crisis and his role in forging a coordinated response by world’s leading energy producers. As the market remained in disarray due to the war in Ukraine, diplomats and heads of state with strategic relationship with OPEC fast-tracked meetings and sundry engagements with Dr Barkindo in a bid to secure supply intervention. OPEC’s intervention became urgent in order to tame global inflation and avert looming recession.
The final weeks of Barkindo’s sojourn as OPEC Sec Gen was one that could be described as sweltering. Across the global map of OPEC and 10 cooperating countries, industry conference schedules and diplomatic summits; Barkindo’s concluding engagements were fully booked, leading to a myriad of virtual and physical meetings, working visits, conferences, workshops, seminars and courtesy calls.
Since the beginning of the year, Barkindo had more than expanded his mystique of a maestro. With the aid of digital technology and high-speed internet, he assumed a spiritual form: appearing at different places to perform unrelated functions. He would dash for a breakfast meeting in London, return to host a technical meeting in Vienna before attending a welcome dinner with a new president of an OPEC country. In between, he would participate virtually in an international conference in Nigeria, switch to deliver a virtual keynote speech to a gas summit audience in Singapore, and finally address administrative issues at the OPEC secretariat.
As he traversed the globe on OPEC mission, ceremonies by the host countries transcended working visits to valedictory receptions. At most countries, hosting the late OPEC Secretary General proved to be extra-ordinary, involving all the diplomatic paraphernalia of a state visit. And depending on the destination, Dr Barkindo’sofficial vehicles included bicycles to ensure minimum greenhouse gas emission and demonstrate his alignment with global concerns for the health of the earth.
In mid-April, the OPEC secretariat hosted the 15th High-level Meeting as part of the EU-OPEC Energy Dialogue. The meeting was co-chaired by Dr Barkindo and the European Commission’s Commissioner for Energy, Kadri Simson. In the High-level Meeting, which would constitute part of Dr Barkindo’s last set of engagements at the OPEC secretariat, the EU presented its initiatives on climate change, including its REPowerEU project, and its efforts in regulating methane emissions.
Dr Barkindo was emphatic that cutting credit lines to stall petroleum industry investments does not guarantee fair and inclusive solutions to pervasive energy poverty among all of the world’s people and the rising impacts of climate change.
He made it clear that stable energy markets are a pre-requisite to any energy transition. The meeting ended with OPEC and EU restating their joint commitment to positive cooperation. They also reached agreements on issues of energy efficiency, new investments, and low carbon economy. The parties also committed to data exchange, international cooperation, mutual understanding and multilateralism.
From meetings, podiums and platforms for energy policy conversations, Dr Mohammad Barkindo remained relentless in bequeathing a more solidified OPEC structure to his successor, the Kuwaiti Haitham Al-Ghais. He had also maintained regular touch with key members of the group with key messages of unity, focus and cooperation.
Valuechain reports that the late OPEC scribe who was also in London few weeks ago before his demise, delivered a keynote address at the University of Dundee where he pointed out that “the new parameters of the public discourse around the energy transition seem reduced to the question: are you for or against fossil fuels? It is perhaps the ultimate false dichotomy,” adding: “all voices need to be listened to. The challenges before us are enormous and complex.”
During a visit to Iraq the country’s top university, the American University of Baghdad and leading research centre, the Iraq Energy Institute, Baghdad hosted the late OPEC Chief to a special dinner to celebrate his outstanding contributions to the global energy industry.
Few people would understand that Dr. Barkindo was an OPEC enfante prodigy! He walked the pathway created by the founding fathers of OPEC and sustained friendly exchanges between the legendary oil policy pillars, Dr. Alirio Parra of Venezuela and Dr. Rilwanu Lukman of Nigeria- who had across decades established several platforms for market crises resolution, and commodity value generation.
While in the company of preceding generation of OPEC stalwarts, Dr. Barkindo had witnessed, observed and participated in meetings on dissecting oil market issues, evolving solutions to disruptions and engaging players on other factors that impinge on market forces. Barkindo had flown in the same plane with world’s leading oil diplomats and renowned policy analysts on missions to engage heads of states, leaders of economic blocs, captains of industry and investor groups. Emerging from the tutelage of eminent OPEC strongmen, Barkindo graduated to become Nigeria’s frontline energy diplomat, policy driver and industry leader.
Soft, benign and polite; the former Wali of Adamawa consistently and successfully drilled down the solid reasons why the world’s political leaders and policy drivers must approach critical issues of climate action, sustainable development and energy access with one strategy that addresses them simultaneously. And with unwavering resolve, he audaciously surged forward with strong economic and policy advocacy that canvasses unbiased platform for energy equity and fair opportunity to enable the poor segments of the global population aspire for accelerated development and mass exit from penury.
These arguments and the data that sustain them, as well as credible and well-developed market intervention strategies, are part of the great legacies Dr. Barkindo bequeathed his successors at the OPEC secretariat. Dr. Barkindo was a dexterous captain with unwavering compass. His routes were many but lead to the same destination. He punched market reset buttons with magic fingers.
Lifetime of accolades, honours
The late Nigerian frontline energy leader received, during his lifetime, tremendous garlands of honour and recognitions from global diplomatic circles, OPEC member countries, cooperating countries, as well as economic and trade blocs.
Barkindo had few days before he passed on been awarded a distinguished fellowship at the Atlantic Council, set to begin upon the completion of his term at OPEC on July 31. Atlantic Council CEO Frederick Kempe had previously described Barkindo as having “unparalleled expertise on oil markets, security, and governance” and “a deep understanding of geopolitics in a volatile world.”
In a statement included in the council’s July 1 announcement of the new fellowship, Barkindo had said, “I am deeply honoured to have been recognized as a distinguished fellow at the Atlantic Council … I look forward to contributing to the organization’s work on a plethora of energy-related issues, at a time when the world’s eyes are focused on both short- and long-term energy market outlooks.”
Before the Atlantic Council’s fellowship, organisers of the fifth Nigeria International Energy Summit (NIES) had earlier in the year conferred on him the prestigious award of International Petroleum Diplomacy Person of the Year. The award which was presented by Gabriel Lima, former Minister of Industry, Mines and Energy of Equatorial Guinea, was received on behalf of Barkindo by Mr. Hasan Hafidh, former Head, Public Relations and Information, OPEC. Reacting to the award, Barkindo said that the modest accomplishments achieved in the last six years in OPEC was due largely to the professional teamwork of his esteemed colleagues at the Secretariat in Vienna.
In June 2022, Barkindo received the Republic of Austria’s prestigious Grand Decoration of Honour in Silver with Sash in acknowledgement of his achievements during his two terms as Secretary General. The honour was conferred by the Austrian President, Alexander Van der Bellen, for enhancing the bilateral ties between the Organization, its host country and the City of Vienna. The decoration is bestowed on citizens and foreigners who demonstrate outstanding merits and achieve exceptional accomplishments.
In 2018, he was presented with the Abdullah Bin Hamad Al Attiyah Energy Award for Lifetime Achievement for the Advancement of OPEC. The Award was a recognition of the pivotal role he played in the adoption of the ‘Declaration of Cooperation,’ which has had a transformative impact on the global oil industry.
At a Ceremony on 7 May 2018, in Doha, Qatar, Barkindo said he was deeply moved to receive the Abdullah Bin Hamad Al AttiyahEnergy Award for Lifetime Achievement for the Advancement of OPEC adding that as a recipient of an award brandishing His Excellency’s name (at that time, Minister of Energy and Industry of Qatar) was overwhelming.
That same year, he clinched the “Africa Oil Man of the Year” award during the Africa Oil & Gas; Power conference, hosted September 5-7, 2018 in Cape Town for guiding OPEC through one of its most turbulent periods, with a sustained oil price decline and a loss in global market share. He is credited with restoring market stability on a global scale through the landmark deal between OPEC and non-OPEC members to cut oil production. In July 2021, Valuechain conferred on
Dr. Barkindo the ‘Global Citizen’ Award during the media establishment’s Annual Lecture and Awards in which Dr Barkindoparticipated virtually.
Barkindo’s famous speech delivered on the day he died titled ‘Oil sector under siege’ was a scene at the 2022 edition of the Nigerian Oil and Gas Conference held at the International Conference Centre Abuja – Nigeria.
Excerpts of the speech
It is very refreshing, indeed a great pleasure to be back home and to join the NOG in person for the first time since the outset of the COVID-19 pandemic. Sharing this important platform with such a distinguished line-up of speakers, and seeing so many old friends, fellow comrades and familiar faces, is a special privilege.
Allow me to pay tribute to the founders of the NOG – late Dr. Rilwanu Lukman and Dr. Allirio Parra, both of blessed memory, and congratulate the Organizers for keeping their legacy alive. Today, I would like to talk about some of the funding challenges facing our industry here in Africa and globally, as well as examine a few of the policy issues affecting investment in the sector.
Before I do so, I would like to draw your kind attention to a couple of important milestones in Nigeria’s recent history. One year ago this month, the Petroleum Industry Bill was adopted by both houses of the 9th National Assembly and signed into law by President Muhammadu Buhari. This was a ground-breaking achievement, culminating many long years of hard work. I am confident that the implementation of the law will help unlock the full potential of our petroleum industry, strengthen its ability to attract long-term investment, as well as support a dynamic and diverse economy.
Excellencies, ladies and gentlemen, If our NOCs are to continue to innovate and flourish, it is of utmost importance that they have predictable and unfettered access to investment capital. Regular Investment at adequate levels is the lifeblood of our industry. It is essential if we are to develop new technologies, strengthen our human capacity and remain leaders in innovation so that we can do our part to meet the world’s growing need for energy, shrink our overall environmental footprint, and expand access to underserved communities.
Yet our industry is now facing huge challenges along multiple fronts, and these threaten our investment potential now and in the longer term. To put it bluntly, the oil and gas industry is under siege!
For starters, the evolving geopolitical developments in Eastern Europe, the ongoing war in Ukraine, the ongoing COVID-19 pandemic and inflationary pressures across the globe have come together in a perfect storm that is causing significant volatility and uncertainty in the commodity markets and, more importantly, in the world of energy.
Against this backdrop, a number of industrialized countries and multilateral institutions continue to pursue stringent policies aimed at accelerating the energy transition and fundamentally altering the energy mix.
Putting these issues aside for a moment, we must not forget that our industry is still reeling from the enormous investment losses of recent years. In a very short time span, the industry has been hit by two major cycles – the severe market downturn in 2015 and 2016, and the even more far-reaching impact of the COVID-19 pandemic.
In 2020, the first year of the pandemic and one of the darkest periods in the history of oil, upstream oil capital expenditure fell by around 30%. This exceeded the colossal 26% annual declines experienced during the severe industry downturn in 2015 and 2016.
As many of you know, I have been involved in the global climate negotiations since their inception three decades ago, representing Nigeria in the early years and more recently OPEC. The past negotiating sessions were never easy.
However, there was always space around the table for multiple viewpoints to be heard and consensual outcomes to be found.
Last month, UN Secretary-General António Guterres suggested in remarks at a White House-sponsored event that our industry is ignoring its responsibility to address the climate change challenge and is undermining global climate policies. Such misleading pronouncements are terribly unfair to many of us in this industry who have dedicated ourselves to working towards inclusive, just and sustainable solutions to the climate challenge. In fact, key stakeholders in the industry are participating in the intergovernmental arrangements and initiatives to develop, deploy and promote cutting-edge technologies to reduce emissions from the production and consumption of energy.
Furthermore, I would respectfully point out that the G7 countries only a few weeks ago called on energy-exporting countries to increase oil production and acknowledged the critical role of OPEC in this regard.
Then at last week’s G7 Summit in Germany, the leaders took a step in the right direction by recognizing the need for continued investment in fossil fuels to help meet the world’s energy needs. It is imperative that they translate these words into policy actions that affirm the importance of a broad portfolio of energy options, including oil and gas, and support an investment climate that makes this possible.
Inopportune remarks and efforts to discourage oil exploration and development are bound to sow the seeds of a more pronounced energy crisis and undermine global energy security. Moreover, they jeopardize efforts to achieve universal, reliable and affordable energy access for people across the globe, including those in developing countries.
Both the market and consumers deserve clear and consistent policies which recognize that oil is indispensable to global economic development and the world’s energy mix. Our industry cannot afford to sleepwalk into another crisis.
It is of utmost importance that we seize opportunities to encourage world leaders to return to the roots and principles of the Paris Agreement. This means focusing on inclusive, Party-driven negotiations and decision-making based on the science and data, not emotions and rhetoric.
COP27, which will take place in Egypt later this year, offers a prime opportunity for developing nations, including those producing oil and gas, to make our voices heard. This is a chance to return to a balanced and holistic process to address critical issues such as adaptation, mitigation and the means of implementation, especially climate finance and technology.
When I first became Nigeria’s delegate to OPEC in 1986, little did I know that I would end up as its Secretary General 30 years later. I will forever be grateful to President Muhammadu Buhari for sending me to OPEC to serve as its 28th Secretary General. It has been gratifying to enjoy his full support, advice and guidance throughout my tenure, during which time I drank from his fountain of wisdom and reservoir of knowledge of OPEC. Muhammadu Buhari is the only current President in the world to have served as Minister of Petroleum and Head of delegation to the Organization.
Serving as Secretary General of OPEC for two terms has been the honour of a lifetime. Over the past six years, we have witnessed both challenging and historic moments, which have underscored time and again the importance of cooperation and teamwork. It has also been a source of pride to see African oil-producing countries becoming more prominent on the global energy stage, not only in OPEC, but through organizations like the Gas Exporting Countries Forum and International Energy Forum with whom we share many members in common.
Together with my very able colleagues at the Secretariat in Vienna, our Member Countries and those in the Declaration of Cooperation framework, we have turned a historic page and wrote several glorious chapters of our industry in the last six years.
At the end of this month, I will hand over the baton as Secretary General to my brother and friend Haitham Al-Ghais of the State of Kuwait. He is a seasoned veteran of the oil industry and an astute diplomat who has dedicated himself to OPEC for many years.
As we move on to a new chapter, we can take comfort in knowing that OPEC and its Member Countries will continue to devote themselves to the core principles of the Organization’s statute: supporting a stable and secure energy future for the benefit of producers, consumers and the global economy. The best is yet to come for OPEC, for Nigeria, and for this great industry.