Primavera Eyes Venezuela Oil Assets Under New US-Backed Framework

Coinbase co-founder Fred Ehrsam's investment firm Primavera is reportedly pursuing three oil assets in Venezuela as part of a US-backed restructuring framework. According to Bloomberg, Primavera is seeking control of at least three fields operated by Alvorada Heavy Industries in the Orinoco Belt.

The Orinoco Belt is one of the largest oil-producing regions in the world, and the reported transaction has sparked interest among investors. However, it's worth noting that some analysts have questioned whether acting President Delcy Rodríguez had the authority to grant 100-year concessions to North American Blue Energy Partners, covering 17 fields.

Primavera's pursuit of Venezuelan oil assets is a significant development, as it marks one of the first times that capital built in crypto has moved into hard assets. The deal would be executed under a US-backed framework, which includes a 35% US government equity stake and preferential purchase rights over production.

The arrangement is part of a wider reallocation of Venezuelan energy assets, with North American Blue Energy Partners already granted concessions covering 17 fields. However, the legitimacy of the deal has been contested, with some analysts questioning whether acting President Rodríguez had the authority to grant such long-term concessions.