20 pct oil royalties won’t impact Shell investments, says chairman

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KOTA KINABALU: 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 was 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 said after a courtesy call on Sabah Chief Minister Datuk Seri Mohd Shafie Apdal here yesterday.

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. — Bernama