Oil Firm Partners with IBM to Use Blockchain Tech in its Value ChainDec 10, 2018 at 21:16
The Abu Dhabi National Oil Company (ADNOC) has teamed up with IBM to pilot a blockchain-based transaction management system to track the path of its products from the wells up to the end-users.
The blockchain powered system will involve both oil and gas production management for ADNOC’s entire value chain including tracking, validating, and executing transactions generally aimed to improve efficiency and transparency.
“With this pilot, ADNOC takes a massive leap forward in asset provenance and asset financials, which, in its simplest terms, enables the ability to track irrefutably, every molecule of oil and its value, from well to customer,” Zahid Habib, IBM’s vice president of chemicals and petroleum solutions, said in a statement.
Specifically, the effort will track the quantity and financial value of oil, gas, condensates, natural gas and sulphur through their entire production line, from well to refinery and then to export.
“(It will) substantially reduce our operating costs by eliminating time-consuming and labor-intensive processes, strengthen the marketing and trading of our products and create long-term sustainable value,” ADNOC’s digital unit manager, Abdul Nasser Al Mughairbi, explained.
“(This is) the first application of blockchain in oil and gas production accounting anywhere in the world. It demonstrates how ADNOC is leveraging innovative partnerships to unleash the power of technology and creative thinking to enhance efficiencies and deliver greater performance,” he added.
Last April, China’s leading conglomerate, Sinochem Group, completed the first shipment of gasoline utilizing the blockchain technology as Sinochem Energy Technology Co. Ltd., successfully exported gasoline shipment from Quanzhou city in China to Singapore.