The Abu Dhabi National Oil Company(ADNOC) recently announced its successful collaboration with IBM, to test a pilot system for blockchain-based supply chain system.
The announcement comes after the withdrawal of Organisation of the Petroleum Exporting Countries(OPEC), dominant producers of oil are now stumbling. With the current crashing of prices in oil, countries are currently seeking cost-efficient avenues in the setup.
The innovative system will provide a secure platform with detailed management information for the entire value chain of ADNOC; including tracking, validating, and execution of transactions at every single stage.
Abu Dhabi National Oil Corporation(ADNOC) is UAE’s state-owned oil company. The company is the largest producer of oil and gas, with an estimated production of 3 million barrels of oil and 10 cubic feet of natural gas.
According to ADNOC, the implementation of blockchain technology has the potential of reducing the time taken for executing transactions between its operating companies and increase the efficiency of operations across ADNOC’s value chain.
The pilot system is developed in partnership with IBM, and the revealing took place at the World Energy Capital Assembly
The unveiling of the pilot system took place at the World Energy Capital Assembly in London, by Digital Unit Manager of ADNOC, Abdul Nasser Al Mughairbi.
At the event, He shared the system’s ambitions by stating,
“We believe this could be 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 further called the blockchain technology as a “game-changer.” He discussed the setup of the system and the impact it will have on the current system, by adding:
“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.”
The pilot system is in partnership with IBM, with the Vice President of chemicals and petroleum of the company saying: “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.”
Also adding that the tracking data will be available to view for the general public, this will enable customers and investors to have a smooth integration experience.
In November, Vakt, a blockchain-based oil trading platform was revealed in conjunction with BP, Shell and other leading energy companies.
UAE indeed sees the benefits of this technology; in November it opened doors for Devs and companies to build their crypto-firms.
As part of their Know Your Project (KYC) project, The Abu Dhabi Global Market(ADGM) conducted a few tests for the blockchain-based system.
The government of different nations is taking up the initiative for enabling a blockchain-based supply chain system, which comes as great news to every individual part of the crypto-industry.