Mexican president-elect Andrés Manuel López Obrador has plans to make a $4 billon investment to the state-owned oil company Petroleos Mexicanos, according to media outlets.
In addition, Obrador appointed Andres Manuel Lopez Obrador as the next CEO of Petroleos Mexicanos. Romero was a government official during Lopez Obrador’s five-year term as the mayor of Mexico City from 2000 to 2005.
Petroleos Mexicanos currently has more than $100 billion in debt.
On Friday Obrador said his administration will look to boost the country’s crude oil production to 2.5 million barrels per day (bpd) from 1.9 million bpd. The investment is part of his plans to expand Mexico’s oil and gas output, which has declined steadily over the past 14 years due to a lack of investment and natural depletion of oil fields, reports to Reuters.
The government will refurbish Mexico’s existing six refineries, which Obrador said were working at 30 percent capacity.
And next year, Mexico will begin work on a new refinery in Dos Boca, located in the Mexican state of Tabasco. The government will invest $8.6 billion over three years.
The president also announced plans to invest $1.1 billion in 2019 in the electricity sector.
Lopez Obrador won the election in July and he will take will take office on Dec. 1.
