Coinbase co-founder Fred Ehrsam has been staying for an extended period at a luxury hotel in Caracas this year to pave the way for entering the local oil industry; his new company Primavera has signed a production-sharing agreement with the state-owned oil company Petróleos de Venezuela.

The 38-year-old Ehrsam does not have a traditional oil and gas background. The Wall Street Journal reports that he has been staying for months at the upscale boutique hotel Cayena Caracas, which has 47 rooms, engaging with government officials and executives from various industries, and assembling a team of lawyers and consultants. Primavera was co-founded by him and Venezuelan-born Manuel Iribarren, a Stanford graduate, this year. The two have been seeking investments locally since February, subsequently directing funds towards oil and gas. They have signed a production-sharing contract for lighter crude oil fields in the eastern Budare block; he is also seeking heavy oil blocks in the Orinoco Belt, including Boca, Guico, and Guara, which are currently operated by Alvorada Heavy Industries. U.S. officials are reportedly assessing whether to revoke existing contracts.

During the same timeframe, Energy Minister Chris Wright visited Caracas, and Chevron announced plans to invest over $7 billion in Venezuela over the next five years through three joint ventures, aiming to double production and add the Carabobo heavy oil field; Italy's Eni signed an agreement for heavy oil development in the Orinoco; GE Vernova signed a contract with the national electricity company to improve the power grid; and Denver's Aspect Holdings signed a technical research contract. The White House previously disclosed that the U.S. holds a 35% stake in North American Blue Energy Partners, which has rights to 17 oil fields with reportedly 65 billion barrels of reserves, and the U.S. has the right to purchase 20% of production at cost. Venezuela used to produce about 3 million barrels per day, dropped to around 300,000 barrels, and recently is at about 900,000 barrels; Chevron accounts for about one-third of that. Ehrsam personally donated $1 million to Trump's 2025 inauguration fund, Coinbase donated another $1 million, and he was invited to join the President's Council of Advisors on Science and Technology. Experts on Venezuelan issues stated they had not previously heard of Primavera, and its expansion remains highly uncertain.

The buy-side aims to convert crypto wealth and political-business relationships into production-sharing rights for the new company, while the sell-side seeks to repackage blocks for U.S. investors and state-owned oil companies aligned with them. Funds are entering oil field operations through personal and newly established energy investment vehicles, rather than through Coinbase or Paradigm's ledgers. Beneficiaries are latecomers who secure contracts for next-best light oil fields before competing for heavy oil zones; existing operators and the still-uncertain long-term political and contract stability are under pressure—signing agreements does not equate to having the capital expenditure and time required for heavy oil development.

Source: Public Information