Abu Dhabi National Oil Company (ADNOC) has declared that in the partnership with IBM, it has successfully carried out a pilot system for a blockchain supply chain system.
These firms were designing the project with an aim to “provide a single platform that tracks the quantities and financial values of each bilateral transaction, between the involved companies” as given in the announcement. Thus, the project will be automating a large part of the accounting between the various companies involved in the supply chain.
The project was revealed at the World Energy Capital Assembly, in London. The announcement was made by the ADNOC Digital Unit Manager, Abdul Nasser Al Mughairbi. He claimed that this could be the first application of blockchain in oil and gas production field.
He further detailed, “Blockchain is a game-changer. 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.”
Moreover, an IBM representative, Zahid Habib talked about the system, saying that it “enables the ability to track irrefutably, every molecule of oil, and its value, from well to customer.”
The press release regarding the project also adds, “[The system] will reduce the time it takes to execute transactions between [its] operating companies and significantly increase operational efficiencies across its full value chain. It will also improve the reliability of production data by enabling greater transparency in transactions.”
Notably, ADNOC is a state-owned oil company based in the United Arab Emirates (UAE). It is one of the world’s leading petrochemical and energy groups, having a daily output of around 3 million barrels of oil and 10.5 cubic feet of natural gas.
Amid this, UAE has experienced several benefits of the implementation of emerging technology. Recently, Abu Dhabi Global Market (ADGM) conducted tests of a blockchain-based system for their Know Your Customer (KYC) project. The oil-rich nation is moving rapidly in blockchain space. Additionally, the crude oil industry and other energy sectors are also eyeing the blockchain technology to implement for enhancement of the system.