Mexico is easing the tax burden for Pemex, the state oil company, to free up more cash to boost flagging production, the government says.

Noting the company’s high tax burden, President Andrés Manuel López Obrador told his Jan. 29 morning news conference the move would allow Pemex to have “more to invest” in its operations.

The finance ministry late on Jan. 28 announced a plan to free up some $580 million a year for Pemex by increasing the limit for deducting costs relating to exploration and production projects.