Sept. 23 (Bloomberg) -- Venezuela, the fourth-biggest supplier of crude oil to the United States, will expand its petrochemicals industry during the next five years, lifting annual revenue to $100 billion, President Hugo Chavez said.

By 2013, the industry will have created 700,000 jobs, 10 times the number employed at state oil company Petroleos de Venezuela SA, requiring $20 billion in investment, Chavez said today during his Sunday television program ``Alo Presidente.''

``Venezuela is going to be a global petrochemicals power,'' Chavez said, according to an e-mailed statement.

The president began today a so-called petrochemical revolution, which will require 87 plants across the country to produce primary materials and petrochemicals-based products like fertilizers, plastics and cosmetics.

``This is going to generate several industries,'' Energy and Oil Minister Rafael Ramirez said in comments broadcast by the Globovision television station.

Royalties to the government from the petrochemicals industry will probably rise to $20 billion by 2013, from $340 million this year, Chavez said.

The government will begin operating a polyethylene plant in December that will have the capacity to produce 60,000 metric tons a year, according to the statement. In 2010, it will inaugurate another, larger plant with the capacity to process a million metric tons a year.

To contact the reporter on this story: Matthew Walter in Caracas at mwalter4@bloomberg.net

Last Updated: September 23, 2007 16:58 EDT