and now ADNOC announces that its successful collaboration with IBM, piloting a Blockchain-based automated system to integrate oil and gas production across the full value chain. The groundbreaking system provides a secure platform for the tracking, validating and execution of transactions at every stage, from production well to the end customer.
According to ADNOC, using Blockchain technology will reduce the time it takes to execute transactions between ADNOC’s 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.
Abdul Nasser Al Mughairbi, ADNOC Digital Unit Manager, said: “We believe this could be the first application of Blockchain in oil and gas production accounting anywhere in the world.
“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.”
ADNOC’s Blockchain pilot has provided a single platform that tracks the quantities and financial values of each bilateral transaction between ADNOC’s operating companies, automating the accounting process.
For example, as crude oil makes its way from the production well to the refinery, or the export terminal, all quantities are accounted for on a daily basis along with the associated monetary values. Other products included in the Blockchain application are gas, condensates, Natural Gas Liquids (NGLs) and Sulphur. These products are exchanged between ADNOC’ operating companies and exported to customers overseas.
As the Blockchain application is expanded, it will eventually be linked to customers and investors, providing seamless integration among stakeholders.
This enhanced clarity and transparency will reduce inherent business risks and consequently enhance the attractiveness of ADNOC Group as an investment partner.
eventually we will see United Arab Emirates and some of Gulf Countries using Blockchain Technology which will let them leader in this field in Arab Countries.
“People Talks Blockchain”- Cryptoniom