Venezuela Oil Minister Rafael Ramirez was leaving Wednesday for Russia and then to China to discuss plans for developing heavy crude blocks in the eastern Orinoco region, the Venezuelan government said in a statement.
Newly named Defense Minister Carlos Mata will be traveling with Ramirez, according to the statement on the government-run ABN news Web site.
"The group will work on advances in oil drilling (deals) with Russia and China in the Junin Block of the Orinoco oil belt," it said, citing comments from President Hugo Chavez.
Ramirez' trip indicates he won't be around for Thursday's long-anticipated Carabobo oil auction, where the government hopes to receive bids on seven promising oil blocks in the Orinoco. Results of the bidding are not expected until Feb. 10.
While the government auctions off oil blocks in the Carabobo round, it has also been arranging direct, bilateral deals for other blocks in the Orinoco, mostly with countries it considers allies such as China and Russia.
A preliminary joint venture deal on the Junin 6 block was signed in September between state-run Petroleos de Venezuela, or PDVSA, and a consortium of Russian oil firms, including Lukoil Holdings (LKOH.RS, LUKOY) and Gazprom OAO (GAZP.RS).
But recent reports have indicated that project has now been postponed amid concerns by Russia over the contract.
The Junin 6 block could eventually produce 450,000 barrels a day of heavy crude, and would require investment of some $30 billion, Venezuelan officials have said.
With China, Venezuela looks to develop the Junin 4 block, a $16 billion project with a potential to produce 400,000 barrels a day.
The statement said Venezuela is looking to build an electricity-generating plant with China in the Orinoco to be used for refineries.