Coinbase co-founder Fred Ehrsam wants to run at least three Venezuelan oil fields. Bloomberg reported the bid, citing people close to the private talks.

The blocks sit in the Orinoco Belt, and Trump officials are already weighing 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. He has traveled there repeatedly since May. His meetings covered oil, gas, fintech, and digital payments, Bloomberg said.

The oil talks run through Primavera, a company he co-founded to invest in Venezuela. Ehrsam has said nothing publicly, and Primavera declined to comment.

His access is unusual for a crypto founder. Ehrsam ran Coinbase as president until 2017 and still sits on its board, Paradigm says. He also advises the White House on science and technology.

Barrels are the slow part. Venezuela holds the world’s largest proven reserves at 303 billion barrels, OPEC data show. It still pumped only 783,000 barrels a day in 2023.

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

“Execution, not geology, remains the key constraint,” read an excerpt in a Rystad Energy upstream research.

The payments side of his pitch could move faster. 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.

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.

Source: BeInCrypto