The Abu Dhabi National Oil Company (ADNOC) has announced its collaboration with IBM to develop a blockchain-based supply chain system for its daily output of 3 billion barrels of oil and 10.5 cubic feet of natural gas.
The announcement was made at the recent World Energy Capital Assembly event in London, where ADNOC Digital Unit Manager Abdul Nasser Al Mughairbi said, “We believe this could be the first application of blockchain in oil and gas production accounting anywhere in the world.”
The pilot project as reported in the release will involve the development of an automated system to integrate financial accountability of oil and gas production throughout the “full value chain”. This implies that the corporation will be able to track transactions and volumes of oil produced within its system.
The objective of the collaboration is to enable ADNOC to explore blockchain potentials in improving cost and time efficiency between operating companies. According to the state-owned oil company, the new technology will shave off valuable time for ADNOC operating companies when executing transactions.
ADNOC’s adoption of blockchain will improve cost tracking activities of oil and gas products, as well as by-products such as condensates, natural gas liquid and sulphur, which are “exchanged between ADNOC’s operating companies and also exported to customers overseas”.
IBM’s Chemicals and Petroleum Solutions VP Zahid Habib said, “With this pilot, ADNOC takes a massive leap forward in asset provenance and asset financials… reinvent [its] hydrocarbon value chain… accelerating ADNOC towards their 2030 vision”, which includes cost efficiency.
ADNOC is one of the world’s leading diversified energy and petrochemicals groups and according to Oil & Gas Journal, it holds a major portion of the seventh-largest oil reserves of the world located in the UAE.
ADNOC CEO HE Dr Sultan Al Jaber, at the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), said, “… the world is on the verge of an era of unprecedented prosperity. This will be driven, he said, by rapid advances in technology and a global middle class, which will grow to five billion people by 2030.”
Despite the cryptocurrency market downturn this year, blockchain development with the UAE industries continues in a steadfast manner.
Last week, Abu Dhabi financial institutions completed Phase 1 of blockchain e-KYC aimed at testing the operational and technological values of a blockchain-based KYC system while adapting its infrastructure to current businesses with sustainable models.
Not too far back, the UAE Bank performed its first Sharia-compliant bonds transaction on the blockchain, paving the way for innovative digitized Islamic Sukuk.
Follow BitcoinNews.com on Twitter: @BitcoinNewsCom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews
Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.
Image Courtesy: Pixabay