Coinbase Co-Founder Fred Ehrsam Pursues Venezuelan Oil Fields

Coinbase co-founder Fred Ehrsam aims to acquire at least three oil fields in Venezuela, located in the Orinoco Belt. The bid is reported to involve private discussions, with the current operator, Alvorada Heavy Industries, potentially losing its contracts. Ehrsam has visited Caracas multiple times since May, discussing oil, gas, fintech, and digital payments. His efforts are linked to Primavera, a company he co-founded for investments in Venezuela. Despite his significant background, including serving as Coinbase's president until 2017 and advising the White House on science and technology, he has not publicly commented on the situation. Venezuela holds the world's largest proven oil reserves at 303 billion barrels but produced only 783,000 barrels per day in 2023. Rystad Energy projects a 17% increase in output by late 2028, adding approximately 194,000 barrels daily. The push for dollarization in Venezuela could accelerate the payments aspect of Ehrsam's plans. Energy Secretary Chris Wright recently arrived in Caracas to discuss up to 17 oil and gas agreements, with a White House fact sheet indicating that North American Blue Energy Partners received 100-year concessions on 17 fields containing around 65 billion barrels. Washington retains a 35% equity stake in the venture and can purchase a fifth of production at cost. Following the announcement, Brent crude prices rose towards 90, indicating trader skepticism about the developments. The outcome of Wright's negotiations will determine Alvorada's future and whether Ehrsam's bid is viable.

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