June 3 (Bloomberg) -- Chevron Corp., the second-largest U.S. oil company, plans to spend $20 billion over five years to boost production in Africa to help meet global demand for oil, natural gas and cleaner fuels, the company said.

The amount will be 30 percent more than was spent during the previous five years, Peter Robertson, vice chairman of Chevron, said in an interview today in the Tanzanian city of Arusha.

Global demand for energy may increase by 50 percent by 2025, Robertson said.

``The world is saying it needs it,'' said Robertson. Almost all of the money will be spent in the sub-Sahara's largest oil producers, Nigeria and Angola, where Chevron is developing deposits, he said.

Up to $5 billion will be used for a plant in Escravos in Nigeria's Niger Delta region, which will convert gas-to-diesel, Robertson said. The facility, when completed in 2012, will have the capacity to produce about 30,000 barrels a day of a grade of diesel that will have fewer pollutants, said Robertson.

Chevron also plans to start producing up to 125,000 barrels of oil a day in Tombua Landana, Angola in the next few years at a cost of $3 billion, he added.

To contact the reporter on this story: Sarah McGregor in Dar es Salaam via Johannesburg at 1933 or abolleurs@bloomberg.net.

Last Updated: June 3, 2008 12:25 EDT