Mexico President Andres Manuel Lopez Obrador has set aside Mex$464.6bn ($23bn) for state oil firm Petroleos Mexicanos (Pemex) to boost its crude output to 50% before 2025.

Pemex is expected to invest Mex$211bn ($10.4bn) in exploration and production next year. The proposed investment will mark a 26% increase compared to last year, when the company planned to invest Mex$168bn ($8.34bn) in the unit, reported Bloomberg.

In addition, Obrador has announced plans to set up new refineries and modernise existing facilities to reduce Mexico’s dependency on foreign fuel imports.

Under a new six-year plan, Pemex will focus on increasing oil production by 52% to 2.624 million barrels a day by the end of 2024, up from the current daily output of 1.730 million barrels.

“Under a new six-year plan, Pemex will focus on increasing oil production by 52% to 2.624 million barrels a day by the end of 2024.”

Pemex will end deepwater exploration. Instead, the company will focus on shore-based and shallow water areas in the south-east basins, as well as conventional areas in the northern basins.

The company is expected to award infrastructure and drilling contracts to develop 20 fields by the end of January next year. To further boost the steady supply of oil, investment on exploration will be increased by 10% every year.

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Backed by government funding, Pemex is expected to expand its Ixachi field in Veracruz, which is estimated to hold almost 1.3 billion barrels of oil equivalent in reserves.

Obrador also announced plans for an $8bn refinery in Tabasco and modernisation of Mexico’s existing six oil production plants.