According to an ADNOC press release, The Abu Dhabi National Oil Company (ADNOC) has successfully collaborated with IBM to pilot a blockchain supply chain system.
The release states that ADNOC, a state-owned oil company in the United Arab Emirates (UAE), is reportedly among the world’s leading energy and petrochemical groups, with a daily output of about 3 million barrels of oil and 10.5 cubic feet of natural gas.
It also reports that the pilot project has “provided a single platform that tracks the quantities and financial values of each bilateral transaction” between the involved companies automating the accounting.
The system had recently been announced by the ADNOC Digital Unit Manager, Abdul Nasser Al Mughairbi, at the World Energy Capital Assembly in London. During the summit, he noted that “this could be the first application of blockchain in oil and gas production.”
Al Mughairbi then further shared his perception of the technology:
“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.”
Zahid Habib, an IBM representative, claimed that the system “enables the ability to track irrefutably, every molecule of oil, and its value, from well to customer.”
The press release further stated what ADNOC hopes this system will bring to the company and its customers:
“[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.”