Sibal may not continue as oil regulator

Caught in the bitter Ambani gas dispute and facing CBI probe over allegations of favouring Mukesh Ambani-led RIL, oil regulator V K Sibal may not continue as Director General of Hydrocarbon from next week.

While Sibal has resigned from his parent firm Oil India Ltd, Petroleum Ministry has already worked out as to who would succeed him, sources in the know said but did not disclose the name. Sibal's 5-year term at DGH ends on October 31.

Despite repeated attempts, Sibal, who has already moved out of his official residence and is not attending office, could not be reached for comments. Also no comment could be obtained from the Petroleum Ministry either.

In the midst of their gas dispute, Anil Ambani group had charged Sibal with approving inflated gas field investment by RIL in lieu of personal favour, a charge that has been stoutly denied by the regulator.

Sibal, Director General of the Directorate General of Hydrocarbons, on October 23 applied for Voluntary Retirement from OIL, from where he had gone on lien to DGH in 2004. OIL top management is believed to be debating on a decision as Sibal was on deputation to the government.

If sibal is not given extension, he would have to go back to OIL till his superannuation in 2011.

Meanwhile, the Oil Ministry has identified a senior executive with a state-run exploration firm to take temporary charge of DGH from the day Sibal's term comes to an end.

The Ministry, which had previously sought the approval of the Appointments Committee of the Cabinet for a two-year extension based on the clearance given by Chief Vigilance Officer, has not sought any temporary extension for Sibal pending the CVC and CBI reports.

His term at DGH comes to an end on October 31 and as per rules is eligible for extension till his superannuation age of 60 years in 2011.

A proposal for extension of his service was pending clearance from CVC and CBI, which are probing the allegations.

It was alleged that Sibal received favours including a Rs 3 crore flat in Mumbai for approving an increase in costs of RIL-operated KG-D6 gas fields to $ 8.8 billion from $ 2.47 billion.