A refinery to be built by Venezuela is to be called "Sandino-Bolívar", will process up to 150,000 bpd and cost USD 2.5 billion, said Monday an official source.

The facilities, called after Nicaraguan national hero Augusto César Sandino and Latin American liberator Simón Bolívar, will be built in Nagarote municipality, about 100 kilometers to the west of Managua, on the Pacific coast, explained the president of state-run-oil holding Petróleos de Nicaragua (Petronic), Francisco López.

As quoted by Efe, López told local station La Nueva Radio Ya that a Venezuelan technical team and a UK expert made last week a survey in the place where the plant is to be erected.

Last January, Venezuelan President Hugo Chávez promised the Nicaraguan government to back the facilities.