Ehrsam Targets Venezuelan Oil Fields as Primavera Prepares to Sign Energy Deals
Coinbase co-founder Fred Ehrsam is expanding his investments in Venezuela's oil industry beyond exploratory stages, seeking control of three oil fields in the Orinoco Belt. According to Bloomberg, he is targeting the Boca, Guico, and Guara blocks operated by Alvorada Heavy Industries, whose contracts are under review for potential revocation by US officials.
The pursuit marks a significant development in Ehrsam's Venezuela strategy, which has been gaining momentum since earlier this year. Primavera, a company he co-founded to invest in Venezuela, is reportedly set to sign new energy agreements with the country alongside major players like Chevron and Eni.
The stakes are high for Alvorada, having invested $30 million in restarting idle wells in the three fields. The company has been working to comply with Venezuela's revised hydrocarbons framework and increase production. In July, it acquired Texas producer Calistoga Energy Reserves to establish a US base for its operations.
The move by Ehrsam into Venezuelan oil is seen as a test of what happens when a government opens an industry by rewriting who gets to operate existing assets. The White House recently announced that Venezuela's interim authorities had granted North American Blue Energy Partners 100-year concessions covering 17 oil fields with approximately 65 billion barrels of proven reserves.