IBM and Abu Dhabi National Oil Company (ADNOC) have announced a partnership to pilot a blockchain-enabled transaction management service for oil commodities – from oil wells to end customers.
The aim of the automated system is to provide a transparent and secure platform for tracking, validating and executing transactions across ADNOC's entire value chain. The blockchain application can be leveraged in oil, gas, condensates, natural gas, liquids and sulphur.
According to the companies, this system is the first of its kind to use blockchain in oil and gas production accounting.
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"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," explained IBM's vice president of chemicals and petroleum solution Zahid Habib.
"Blockchain is a game-changer," added Abdul Nasser Al Mughairbi, ADNOC's digital unit manager. "It will substantially reduce our operating costs by eliminating time-consuming and labour-intensive processes, strengthen the marketing and trading of our products, and create long-term sustainable value."
The tech giant has become a blockchain industry leader as this year it has announced several new platforms utilizing the technology. Most recently, it filed a patent to use blockchain to aid scientific research while back in October it announced a partnership with Travelport to use blockchain and AI to disrupt the travel industry. These are just a few moves in the tech giant's "master plan" to democratize the technology.