The national oil company of Abu Dhabi (ADNOC), which is the state oil company of the United Arab Emirates, announced the successful pilot launch blockchain-system supply chains of oil, which was developed in cooperation with IBM.
According to a press release, the pilot project demonstrated the work of “a single platform that tracks quantitative and financial performance of each bilateral transaction” between parties through an automated accounting system.
The decision was presented by the head of the digital division, ADNOC, Abdul Nasser al Muhairbi at the summit of the World Energy Capital Assembly, held in London, noting that “this may be the first use of the blockchain in the production of oil and gas.”
“The blockchain technology that changes everything. It will significantly reduce our operating costs by eliminating time-consuming processes, strengthening marketing and trade our products and creating long-term sustainable value,” he added.
The IBM representative Zahid Habib (Habib Zahid), in turn, said that the system “includes the ability conclusively to track every molecule of oil and its cost, from the wellhead to the customer.”
Edition ArabianGazette also adds that in the future consumers and investors will have access to the data “lead to a smooth integration process” to interested parties.
“The system will reduce the time required for transactions between companies, and will greatly enhance operational efficiency across the value chain. It will also improve the accuracy of production data, ensuring a high level of transparency of transactions,” — said in a press release.