efe-epaMexico City

Mexican President-elect Andres Manuel Lopez Obrador presented here Friday a plan to invest 304 billion pesos ($16.3 billion) to expand energy output, with most of the sum earmarked for state oil company Pemex.

The equivalent of $4 billion will go toward drilling new wells with the aim of increasing oil production from the current level of 1.9 million barrels per day to 2.5 million bpd by the end of 2020, the future head of state told reporters outside his transition office in Mexico City.

"In 14 years we have lost 1.5 million bpd," he said, referring to an ongoing decline in crude output. "That's why we're going to intervene in an urgent way."

The second element of the plan calls for spending some $2.6 billion to ensure that Mexico's six existing oil refineries are operating at 100 percent of capacity within two years.

Another $8.57 billion is to be invested in building a seventh refinery at Dos Bocas, a Gulf coast port in the southeastern state of Tabasco, Lopez Obrador said.

"With the new refinery and the rehabilitation of the others, we will keep the campaign promise we made that by the midpoint of the six-year term, we will stop buying gasoline from abroad and we will lower the prices of fuels," he said.

Apart from investment in the oil sector, the initiative assigns around $1 billion to increasing electricity output by "modernizing the hydroelectric plants," the leftist president-elect said.