Mexican President-elect Andres Manuel Lopez Obrador said his government will invest 160 billion pesos to build a new oil refinery in the southern state of Tabasco over the next three years, Reuters reported July 27.
The investment is part of an effort by Lopez Obrador to strengthen the country's domestic oil output and decrease its reliance on foreign oil purchases. He is also planning to boost production at six existing refineries under state oil company Petróleos Mexicanos SA de CV with an investment of 49 billion pesos to overhaul production at the refineries, The Financial Times wrote separately.
The incoming president named Octavio Romero Oropeza as the next CEO for Petróleos Mexicanos.
Lopez Obrador expects the incoming administration to invest another 175 billion pesos into the country's energy sector in 2019. Of this amount, 75 billion pesos will serve as a capital injection into Petróleos Mexicanos, The Financial Times added.
As of July 27, US$1 was equivalent to 18.57 Mexican pesos.