Offshore staff
ABU DHABI, UAE – ADNOC is collaborating with IBM on a Blockchain-based automated system to integrate oil and gas production ‘across the full value chain.’
The system is designed to provide a secure platform for tracking, validating and execution of transactions at each stage of the process, from a production well to the end user.
Use of the technology should shorten the time taken to implement transactions between the group’s operating companies and increase operational efficiencies, ADNOC said, at the same time improving the reliability of its production data through 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.”
The technology pilot has provided a single platform which tracks the quantities and financial values of each bilateral transaction between the group’s operating companies, automating the accounting process.
For example, as crude oil heads from the production well to the refinery or export terminal, all volumes are accounted for daily along with associated monetary values.
Other products included in the process are gas, condensates, natural gas liquids, and sulfur.
Blockchain is a shared ledger that can record transactions among a network in a verifiable and permanent way. Information is stored in blocks and once recorded data cannot be altered retroactively without alteration of all subsequent blocks (which requires consensus of the network majority).
This is said to allow participants to verify and audit transactions independently and relatively inexpensively.
12/10/2018
