Abu Dhabi National Oil Company and IBM Pilot Blockchain-Powered Supply Chain System
The Abu Dhabi National Oil Company (ADNOC) and IBM have teamed up on a new blockchain system that integrates oil and gas production across the full value chain.
The Abu Dhabi National Oil Company (ADNOC) and tech giant IBM have partnered to pilot a blockchain-based transaction management service for oil commodities.
According to an ADNOC press release published on Sunday, the automated system will provide a secure platform for the tracking, validating and execution of transactions at every stage of the oil supply chain, from production well to the end customer. The state-owned oil company noted that using blockchain technology will reduce the time it takes to execute transactions, increase operational efficiencies and improve the reliability of production data by enabling greater transparency in transactions.
The system was announced by ADNOC Digital Unit Manager Abdul Nasser Al Mughairbi at the recent World Energy Capital Assembly in London. Calling blockchain technology a “game-changer”, he noted that the newly-developed system is “the first application of Blockchain in oil and gas production accounting anywhere in the world.”
“It demonstrates how ADNOC is leveraging innovative partnerships to unleash the power of technology and creative thinking to enhance efficiencies and deliver greater performance,” Al Mughairbi told the summit.
Zahid Habib, IBM’s vice president of chemicals and petroleum solutions, also commented on the partnership: “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.”
IBM has become one of the top blockchain industry players. In addition to developing its own blockchain platform, the tech giant has also partnered with big names such as Walmart and Maersk, and is providing them support for logistics and supply chain management using blockchain technology. IBM also ranks second only to the Chinese company Alibaba in terms of patents held regarding blockchain technology - almost 90.