The Abu Dhabi National Oil Company (ADNOC) on Sunday revealed that it has signed an agreement with US tech giant IBM to launch a Blockchain-based automated system to integrate oil and gas production across the full value chain.
The new system will provide a secure platform for the tracking, validating and execution of transactions at every stage, from the production well to the end customer, Abu Dhabi’s state-run firm said in a statement.
“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,” Abdul Nasser Al Mughairbi, ADNOC Digital Unit manager, commented.
The state-run company noted that using Blockchain technology will reduce the time it takes to execute transactions between ADNOC’s operating companies.
It will also increase operational efficiencies across its full value chain, in addition to improving the reliability of production data by enabling greater transparency in transactions, the statement added.
“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,” Zahid Habib, IBM’s vice president of chemicals and petroleum solutions, said.