Abu Dhabi National Oil Company (ADNOC) has recently teamed up with IBM in order to create and launch a blockchain-based platform for (pretty much all of) its commodities. The company is planning to move its current infrastructure to the blockchain, starting from the oil wells to the end customers.
The primary aim of this automated solution is to aid ADNOC in oil and gas production management. It is expected to cover a comprehensive chain, including but not limited to, transaction handling, tracking, execution, and validation.
ADNOC has set its eyes on achieving a greater level of automation and transparency. However, it is quite evident that the scope of this pilot goes way beyond the regular pilot projects launched in the very niche. You must have realized that this solution targets the entire oil and gas lifecycle.
It is also worth noticing that even at the development stage, they have future goals in mind. ADNOC plans to extend the solution to customers and investors as well.
Zahid Habib, IBM’s VP for chemical and petroleum, praised the pilot in golden words. He said that the achievement is indeed a major step into the future. Adding more to it, he also mentioned that the solution enables ADNOC to track every molecule of oil and offer asset provenance as well.
How does ADNOC take it?
Pretty well, of course!
Just after its announcement at the World Energy Capital Assembly in the UK, Al Mughairbi, ADNOC’s digital unit manager, clarified how the pilot could benefit them.
He expressed himself by calling the blockchain technology a game changer, possessing the potential to reduce ADNOC’s operational costs. The company is keenly looking forward to diminishing the expenditure on cost-ineffective and labor-intensive procedures. Blockchain surely has the ability to turn the table in that regard.
If we look at the overall proceedings of the industry, cool stuff seems to be happening. Towards the end of November 2018, Shell and BP’s blockchain based solution hit the market. It should be noted that the consortium includes other industry giants. Companies as Equinor, ABN Amro and Gunvor Group are driving blockchain innovation.