ADNOC or Abu Dhabi National Oil Company successfully collaborated with IBM to pilot a blockchain supply chain system, as it was reported by one press release of the company, on the 9th of December.
ADNOC, an oil company among the leading ones in the world
The press release also notes that the ADNOC, which is a state-owned oil company in the United Arab Emirates or UAE, is among the leading energy and petrochemical groups in the world, with a daily output of about 3 million barrels of oil, as well as 10.5 cubic feet of natural gas.
This pilot project provided a single platform which tracks the qualities, as well as the financial values of each bilateral transaction between the involved companies automating the accounting, according to the statements of the press release.
The system was announced by the Digital Unit Manager of the oil company, named Abdul Nasser Al Mughairbi, at the World Energy Capital Assembly in London in recent times.
The first application of blockchain in oil and gas production
At the time of the summit, Abdul noted that this could actually be the first application of blockchain in oil, as well as gas production. Further on, he continued illustrating his perceptions of the underlying technology.
He said that blockchain is actually a game-changer. It is substantially going to reduce their operating costs by eliminating time-consuming, as well as labor-intensive processes, strengthening the marketing and trading of their products, also creating permanent, sustainable value, according to him.
One representative from IBM, named Zahid Habib, stated that the system will enable the capacity of tracking irrefutably, every molecule of oil, and its value, from well to customer. Also, according to other reports, it was added that in the future, customers, as well as investors are going to be given access to the data providing seamless integration among stakeholders.
The global market of UAE’s capital completed a test for blockchain-based system
Further on, the press release of the company also noted that ADNOC hopes this system is going to bring to the company and its customers, saying that the system is going to reduce the time which is needed to execute transactions between the operating companies and importantly increase operational efficiencies all over the full value chain of it. Also, it is going to improve the reliability of production data by enabling greater transparency in transactions.
Another report from other sources earlier in the last week reported about the launch of a blockchain-based processing tool from post-trade management platform VAKT, which is designed for an initial group of crude oil industry clients, which include giants like BP, Equinor, Gunvor, Shell, and Mercuria.
The global market of Abu Dhabi also completed a test of a blockchain-based system earlier in the last week. The international financial free zone in the UAE’s capital successfully concluded a pilot for the Know Your Customer or KYC project.