- ADNOC, Abu Dhabi based company announces a new blockchain powered platform to help track supply chain
- The proposed system will help track oil movement from the oil well to the customer.
As revealed on the 9th of December, the Abu Dhabi National Oil Company has partnered IBM to implement a blockchain supply system. This was made known in an official press release by the company.
Blockchain Supply Chain System of ADNOC
Abu Dhabi National Oil Company, which is a state-owned company in the United Arab Emirate as well as a top leading energy and petrochemical group with a daily output of about 3 million barrels of oil and 10.5 cubic feet of natural gas, is introducing blockchain supply chain system. This is to be facilitated by a partnership with IBM.
The supply chain system as noted in the press release states the project is providing a single platform that tracks the quantities and the financial values of each bilateral transactions between the involved companies automating the account.
Earlier, before the official release of the blockchain supply chain system, the ADNOC Digital Unit Manager, Abdul Nasser Al Mughairbi, announced it at the recent World Energy Capital Assembly in London. Abdul noted at the summit that the system could be the first application of blockchain in the oil and gas production.
Abdul further noted that blockchain is a game changer and it will substantially reduce the operating cost by eliminating time consuming and labor intensive measure. Also, it will strengthen the marketing and trading of products and create long-term sustainable value.
According to an IBM representative, Zahid Habib, he stated that the system enables the ability to track the molecule of oil and its value irrefutably from well to customers. This will provide the parties involved in trading with the necessary data which will enable seamless integration among stakeholders.
ADNOC noted in the release that the system would reduce the time it takes to execute transactions between the operating companies and significantly increase the operational efficiencies across its full value chain. This is stated that it will improve the reliability of production data by aiding greater transparency in transactions.
Recent Blockchain Adoption
Blockchain use and adoption continue to see the growth of recent. Last week a blockchain processing tool from post-post-trade management platform VAKT was launched. This was designed for an initial group of crude oil industry clients which is inclusive of giants such as BP, Equinor, Shell, Gunvor, and Mercuria.
Also, recently Abu Dhabi Global Market completed a test of blockchain based system, and the international financial free zone in the capital of the United Arab Emirates (UAE) also concluded a blockchain pilot for the know your customer project.