Abu Dhabi National Oil & IBM Pilots Blockchain Supply Chain System December 9, 2018 December 9, 2018 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsDecember 9, 2018 by Kelly Cromley

Abu Dhabi National Oil & IBM Pilots Blockchain Supply Chain System

The Abu Dhabi National Oil Company (ADNOC) has announced its triumphant collaboration with IBM to build a Blockchain-based mechanical system to integrate the production of oil and gas throughout the total value chain. The pioneering system gives a secure platform for the tracking, corroboration and finishing of transactions at every stage, from manufacturing to the end user.

According to ADNOC, using Blockchain technology reduces the time required to carry out transactions between the operating companies of ADNOC and significantly increases the operational efficiency throughout its entire value chain. It also improves the reliability of production data by making transactions more transparent.

The industry – leading project was announced at the recent World Energy Capital Assembly in London by Abdul Nasser Al Mughairbi, ADNOC Digital Unit Manager. ADNOC shared its aspirations and early victories in integrating Blockchain and other advanced technologies, including artificial intelligence, all through its business to enhance working efficiency, increase profitability and unchain new value from oil and gas assets in order to obtain benefit of the opportunities made by Oil and Gas 4.0.

Al Mughairbi said “We believe this could be the first application of Blockchain in oil and gas production accounting anywhere in the world.”

It shows how ADNOC uses innovative partnerships to unleash the power of technology and creative thinking in order to improve efficiency and achieve higher performances.

“Blockchain is a game-changer. 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 that will ensure that ADNOC delivers on its 2030 smart growth strategy.”

The ADNOC Blockchain pilot has provided a single platform to automate the accounting process, tracking the quantities and financial values of each bilateral transaction between the ADNOC operating companies.

For example, because crude oil goes well from production to the refinery or export terminal, all quantities are taken into account daily along with the corresponding monetary values. Other Blockchain products include gas, condensates, natural gas liquids (NGLs) and sulfur. These products are traded between the operating companies of ADNOC and exported to customers in other countries.

Zahid Habib, IBM’s Chemicals and Petroleum Solutions VP, said “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. This unlocks the potential to digitally reinvent ADNOC’s hydrocarbon value chain, adds a unique dimension to their data visualization in their Panorama Digital Command Center, and accelerates ADNOC towards their 2030 Vision.”

As the Blockchain application is expanded, it will eventually be connected to customers and investors, offering stakeholders a seamless integration. This improved clarity and transparency reduces the inherent business risks and thus increases the attractiveness of the ADNOC Group as an investment partner.

Blockchain is a shared ledger that can efficiently and permanently record transactions within a network. Information is stored in blocks and, once recorded, data cannot be altered retroactively in any given block without altering all subsequent blocks, which requires a consensus of the majority of the network. This enables the participants to independently and relatively cheaply verify and audit transactions.

At ADIPEC 2018, ADNOC announced its efforts to exploit the energy resources needed to enable global economic growth in the 4th Industrial Age, an era in which digital innovation delivers unprecedented prosperity and drives demand for oil and gas products. ADNOC is working towards meeting this demand and taking advantage of the opportunities of Oil and Gas 4.0 through creative partnerships.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.