Venezuela's state-run oil company PDVSA will invest 5 billion US dollars in building three refineries and expanding two others to raise the country's oil processing capacity, Energy Minister Rafael Ramirez said on Sunday.

Ramirez, also PDVSA president, said the company will build a 200-million dollar oil refinery in the southwestern state of Barinas, a 3-billion dollar complex in the central state of Guarico, and a 150-million dollar facility in the eastern state of Monagas.

The three refineries will process heavy crude pumped from the Orinoco River petroleum-producing region, which has the largest reserves of this type of oil in the world, with estimated 235,000 million barrels.

The PDVSA will also expand the Jose oil refinery in eastern Venezuela and upgrade the El Palito refinery in the northwest, said Ramirez.

The minister said the country seeks to increase its oil production from the current 3.2 million barrels per day (bpd) to more than 5 million bpd in 2009 and at least 60 percent of the 5 million barrels will have to be refined in the country to get added value.

The average price of crude is 40 dollars per barrel, yet the price of gasoline is 58 to 60 dollars per barrel, showing an added value of 20 dollars per barrel, said Ramirez.

Venezuela is the world's fifth largest oil exporter.

Source: Xinhua