IBM And UAE Oil Company To Launch Blockchain Project
IBM has started the cooperation with the Abu Dhabi National Oil Company (ADNOC) to launch a pilot project for the supply of petroleum products on blockchain, the ADNOC press service reports.
The company from Abu Dhabi produces nearly three million barrels of oil a day and, based on this indicator, is one of the global leading oil-producing energy corporations.
The project represents a single blockchain platform, on which two participants of the deal will be able to track the number of bilateral transactions and their price automatically.
This decision was first announced by Abdul Nasser Al Mughairbi, ADNOC digital technologies manager, at a conference of energy companies in London. He emphasized that this is probably one of the first applications of blockchain technology in the oil and gas production industry.
Blockchain will change the working conditions, the specialist stated. The technology will help reduce operating expenses by excluding labor-intensive processes, will give a boost to marketing, and improve the terms of trade.
The platform will track “every molecule of oil” all the way from well to the ultimate user, Zahid Habib, IBM spokesman, stressed. Distributed ledger technology will reduce transaction time and increase work efficiency, while all data will be reliable and secure.
As previously reported, VAKT launched a blockchain platform uniting a group of oil-producing companies, including British Petroleum (BP) and Shell.