Coinbase Co-Founder Targets Venezuelan Oil Blocks

Fred Ehrsam, the co-founder of Coinbase, is seeking to operate at least three oil fields in Venezuela. Bloomberg reported the effort, citing sources familiar with the private discussions.

The fields are located in the Orinoco Belt. Trump administration officials are already considering whether to strip the current operator, Alvorada Heavy Industries, of its contracts.

Inside Ehrsam's Push for Venezuelan Oil Fields

Ehrsam is no stranger to Caracas, having travelled there repeatedly since May. According to Bloomberg, his meetings covered oil, gas, fintech and digital payments.

The oil negotiations are being conducted through Primavera, a company he co-founded for Venezuelan investments. Ehrsam has made no public statements, and Primavera declined to comment.

JUST IN: Coinbase co-founder Fred Ehrsam is reportedly seeking control of three Venezuelan oil fields as the US weighs revoking their current operator's contracts.

It is unusual for a crypto founder to have such access. Ehrsam served as Coinbase's president until 2017 and still holds a board seat, according to Paradigm. He also advises the White House on science and technology.

Oil production is the slower part. Venezuela holds the world's largest proven reserves at 303 billion barrels, according to OPEC data. Yet in 2023 it pumped only 783,000 barrels a day.

Recovery will not be quick. Rystad Energy expects national output to grow 17% by late 2028, adding roughly 194,000 barrels a day.

“Execution, not geology, remains the key constraint,” according to an excerpt from Rystad Energy's upstream research.

The payments side of his pitch could move more quickly. Venezuela is moving toward formal dollarization, which widens the market for dollar rails.

Washington Reshuffles Venezuela Oil Contracts

Energy Secretary Chris Wright landed in Caracas late Tuesday, the Department of Energy said. He is expected to present as many as 17 oil and gas agreements.

Just touched down in Venezuela.

President Trump's energy diplomacy is delivering results—advancing new energy deals, opening the door for American companies, and strengthening energy security across our hemisphere.

American energy leadership is back thanks to @POTUS.

The state deal sets the terms any newcomer must accept. A White House fact sheet dated August 31 grants North American Blue Energy Partners 100-year concessions on 17 fields.

Those fields hold about 65 billion barrels. US territory holds roughly 46 billion, the fact sheet says.

Washington kept leverage. It took a 35% equity stake in the venture's parent. It can also buy a fifth of production at cost.

Traders were unimpressed. Brent crude climbed toward $90 after the announcement instead of falling.

Wright's signings this week will show whether Alvorada keeps its blocks. Only then will it be clear whether Ehrsam is bidding for something available.