Fred Ehrsam, the billionaire co-founder of Coinbase, is actively pursuing control of at least three Venezuelan oil fields in the Orinoco Belt: Boca, Guico, and Guara. This initiative is unfolding amidst a larger U.S. effort, supported by the Trump administration, to overhaul Venezuela's struggling oil sector and attract foreign investment. The fields are currently operated by Alvorada Heavy Industries Ltda., but U.S. officials are reportedly considering revoking these contracts, creating an opportunity for new investors like Ehrsam.
Ehrsam, who co-founded Coinbase in 2012 and later Paradigm, has emerged as a well-connected new investor in Venezuela. He has made multiple trips to Caracas, meeting with senior U.S. and Venezuelan officials to explore investments not only in oil and gas but also in financial technology and digital payments. His firm, Primavera, which he co-founded to invest in Venezuela, is among several companies, including Chevron, Italian energy group Eni, and KEO Capital, involved in new energy agreements as Venezuela opens its oil industry to foreign capital.
This move by Ehrsam aligns with new oil reforms approved by Venezuela in January, designed to attract foreign investment by offering greater autonomy to private operators and allowing for the review and replacement of existing agreements. Chevron, for instance, plans to invest over $7 billion to roughly double its production in Venezuela to about 600,000 barrels per day over the next five years. Despite having the world's largest proven oil reserves at approximately 303 billion barrels, Venezuela's production was only 783,000 barrels per day in 2023, with forecasts for a gradual recovery.
Ehrsam's involvement is notable given his background in cryptocurrency. He has strong ties to the Trump administration, having personally donated $1 million to President Donald Trump's 2025 inaugural fund and serving as an adviser on the president's science and technology council. His net worth was estimated by Forbes at about $2.4 billion as of September 3. While his public identity remains tied to crypto, the current negotiations for the oil fields do not involve any token issuance, stablecoin mandates, or on-chain off-take contracts.
