KOTA KINABALU, Sept 18 — Shell Malaysia does not expect the granting of 20 per cent oil royalties to Sabah and Sarawak to impact their investments.

Chairman Datuk Iain Lo said the oil and gas regulations in Malaysia were very clear for companies like Shell, and as long as the fiscal and regulatory regime was good, Shell would continue investing in the country.

"As far as I can see, neither the state governments (Sabah and Sarawak) nor Petronas will do anything that will undermine the investment climate here,” he told reporters after a courtesy call on Sabah Chief Minister Datuk Seri Mohd Shafie Apdal here today.

Lo said Shell was always looking to see how it could expand its business in Malaysia’s oil and gas sector.

On Shell’s operations in Sabah, he said the two deepwater oil fields, Gumusut Kakap and Malikai, were jointly producing more than 200,000 barrels a day.

On another development, Lo said Shell was proud of the success attained by one of its corporate social responsibility programme in Sabah, the ‘‘Access to Energy’’ carried out at a remote village in Pensiangan.

"We put a micro (hydro) turbine there to generate electricity for the village.

"Soon, two more villages in Sabah will also benefit from this programme,” he added. — Bernama