Chevron Corp. said Thursday it has submitted an environmental permit application to the Mississippi Department of Environmental Quality to build an oil facility at its Pascagoula, Miss., refinery.

The facility is expected to produce 25,000 barrels of premium base oil per day for use in a wide range of transportation-related products.

Construction is expected to begin in 2009 and end in 2011.

Shares of San Ramon, Calif.-based Chevron rose $1.85, or 2 percent, to $88.31 in morning trading.