According to a press release on December 9, ADNOC – Abu Dhabi National Oil Company has joined hands with IBM in order to develop a blockchain supply chain system.
ADNOC is one of the world’s leading petrochemical and energy groups with a daily production of 3 million barrels of oil and 10.5 cubic feet of natural gas. What is the purpose of this partnership? The project essentially provides a unilateral platform which records the quantities and financial expense of each bilateral transaction between the companies involved.
Abdul Nasser Al Mughairbi, Digital unit manager ADNOC announced about the project at World Energy Capital Assembly in London. Al Mughairbi stated that ‘this could be the first application of blockchain in oil and gas production.’ He further went on to say that, ‘Blockchain is a game-changer. It will substantially reduce operating costs by eliminating time-consuming and labor-intensive processes, strengthen the marketing and trading of our products, and create long-term sustainable value.’
IBM representative, Zahid Habib claim that’ system enables the ability to track irrefutably, every molecule of oil, and its value, from well to customer.’ In the future, customers and investors will be provided with access to the data enabling smooth assimilation among stakeholders. Who are stakeholders? An individual or an organization who have interest in a particular project and are impacted by the outcome of the project. Stakeholders can be within as well as outside the organization.
According to the same press release of December 9, ADNOC believes that ‘[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.’
Earlier this week, Abu Dhabi Global Market successfully completed a blockchain based system test. The international financial free zone in the United Arab Emirates has very successfully and conveniently concluded a pilot for their KYC (Know your Customer) project.
