Mexico-based Petróleos Mexicanos (Pemex) has announced plans to invest $23bn on its refineries in the next three years.
The investment will help the company in boosting production of clean fuel, increase capacity of crude processing capacity.
Pemex announced its latest investment projects during an event held at the 315,000-b/d Miguel Hidalgo refinery in Tula, Hidalgo state where it is carrying out a $5bn upgrade.
Miguel Hidalgo is located about 150km from Mexico City and was built in March 1976. It became operational in 1977.
The initial processing capacity of the refinery was 150,000 barrels per day (bpd) and currently it has a processing capacity of 320,000bpd.
“These are new investments for the benefit and care of Mexicans’ health.”
President Enrique Peña Nieto said: “We will now have cleaner fuels with a lower sulfur content, which will allow us to reduce the emission of greenhouse gases, which pollute the environment and affect Mexicans’ health.
“These are new investments for the benefit and care of Mexicans’ health.”
The latest investments come at a time when Pemex is struggling with budget cuts due to fall in oil prices globally.
Pemex also plans to invest about $8bn to upgrade refineries at Salamanca and Salina Cruz.
The company’s other investments will include $3.1bn at all of its refineries to increase output of ultra-low-sulfur gasoline to 212,000 barrels a day.
Another $3.9bn investment will be made to increase output of ultra-low-sulfur diesel and $3bn will invested be invested in a series of cogeneration projects.
Pemex chief executive Emilio Lozoya said that in 2015 the company had managed to lower administrative and operating costs by several billion dollars.
During the second half of 2015, the company made additional oil and gas finds that are expected to have reserves of 180 million barrels of crude oil equivalent in two shallow water deposits.
They could also produce 40,000 barrels a day of crude oil and 25 million ft³ a day of natural gas, Lozoya said.
