Jyoti Mukul :Caught in the cross fight

BACKSTAGE

The first time the controversy over Director General of Hydrocarbons (DGH) Vinod Kumar Sibal's appointment to ONGC's board surfaced in April, Sibal made it clear he had nothing to do with it.

"It is a government decision," he said. This time around, however, he fell for the media's bait and joined issue with ONGC chief Subir Raha, who threatened to resign if Sibal was appointed.

Unfortunately, while many felt Sibal was just carrying out orders, the petroleum ministry that started the matter decided to back off; Petroleum Minister Mani Shankar Aiyar chided Sibal for his ill-advised outburst and the issue was referred to the law ministry for advice.

Sibal joined ONGC in 1975 where he worked for about a year and then moved on to Oil India Ltd (OIL). Thirty years down the line, fingers are being raised on his appointment to a company from where he started.

The decisive question here is whether Sibal in his capacity as DGH is a regulator, and if he is, should he be part of a company that is the biggest domestic player in the exploration sector.

While many in the sector feel Sibal fell prey to a ministry-versus-Raha duel, there is no love lost between Raha and Sibal. On becoming DGH, after being director (personnel) at OIL, Sibal said he wanted the announcement of oil reserves by listed companies to be monitored by the Securities Exchange Board of India.

While this was valid for all upstream companies operating in the country, he was particularly critical about the news of ONGC finds finding their way into media.

Sibal has been an upstream man who has made it to the director general's office in November 2004 after the position lay vacant for more than a year.

At many meetings convened by the petroleum ministry with ONGC and its subsidiary ONGC Videsh Ltd, he is said to have pointed out the holes in the company's presentation. Many such interjections impressed the ministry brass, and they wanted Sibal on the ONGC board.

The official reason for his appointment to the board was, therefore, that he would be adding value to ONGC's operations. Unofficially, his appointment was also seen as a means to rein in Raha whose term expires next year.

Though the controversy appears to have died down for now, both Sibal and Raha will still have to work in close proximity since the former has to vet every move the latter makes in the new exploration areas.