The Daily Journal – Coinbase co-founder Fred Ehrsam is negotiating to gain control of at least three oil fields in Venezuela, according to sources familiar with the talks.
Alvorada Heavy Industries Ltda currently operates the fields — Boca, Guico and Guara, located in the Orinoco Belt — while U.S. authorities review the company’s contracts and consider potentially revoking them.
The sources, who requested anonymity because the negotiations remain private, said they expect further changes to oil contracts during Energy Secretary Chris Wright’s visit to Caracas, where he plans to present as many as 17 oil and gas agreements.
The restructuring forms part of President Donald Trump’s initiative to revive Venezuela’s oil industry with foreign capital and increase supplies as the United States replenishes its strategic reserves.
The Trump administration’s approach, however, changes the rules governing access to the sector: under the Maduro government, contracts depended on ties to government officials and state-owned oil company PDVSA; now, connections in Washington increasingly determine who participates in the industry.
Harvard University political scientist Steven Levitsky said Trump’s interest in controlling other countries’ oil resources is shaping U.S. policy toward Venezuela.
Ehrsam, who has traveled to Caracas several times and met with senior U.S. and Venezuelan officials, has explored investments in oil, gas, financial technology and digital payments.
His interest in Alvorada’s fields reflects the uncertainty that current operators face as they adapt to the new order. Alvorada, which invested about US$30 million since 2023 to reactivate wells, had to work with a politically connected local contractor at PDVSA’s insistence, which increased its costs.
More recently, the company adjusted its strategy to comply with Venezuela’s new hydrocarbons law and expand production, but it now faces a new challenge from Washington. In July, Alvorada acquired Texas-based Calistoga Energy Reserves LLC to establish a U.S. headquarters and coordinate its Venezuela strategy from there.
Alvorada is not the only company facing changes. Authorities are also reconsidering other contracts, including the Ayacucho 6 project, awarded to West-Construcciones C.A., and the Bare field, operated by Cavallino Oil Company.
The Gilinski family and GeoPark Ltd are close to reaching an agreement to operate Bare. In May, Venezuela’s Oil Ministry revoked DP Delta Finance BV’s minority stake in the Petrodelta joint venture and transferred the assets to Pacific Coast Energy Co.
The restructuring has also affected U.S. investors who previously appeared well positioned. In August, the Trump administration pressured businessman Harry Sargeant III to sell his stake in North American Blue Energy Partners. He ultimately agreed to a US$300 million sale after the Treasury Department froze the assets of his offshore partnership.
