The Abu Dhabi National Oil Company (ADNOC) has collaboration with IBM to pilot a blockchain-based application that integrates oil and gas production across the full value chain.
The system will provides a secure platform for tracking, validating and executing transactions at every stage.
Its blockchain technology will reduce transaction time between ADNOC’s operating companies, increase operational efficiencies and improve production data reliability, the company said.
The project was announced by Abdul Nasser Al Mughairbi, ADNOC Digital Unit manager, at the World Energy Capital Assembly, in London, where the firm revealed that technologies such as blockchain and AI had helped it drive profitability and unlock new value from oil and gas resources.
"We believe this could be 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 said.
Calling blockchain a ‘game-changer,’ he said it will substantially reduce ADNOC’s operating costs by eliminating time-consuming and labor-intensive processes, while ensuring the firm delivers on its 2030 smart growth strategy.
Zahid Habib, IBM's Chemicals and Petroleum Solutions VP, said, "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.”
“This unlocks the potential to digitally reinvent ADNOC's hydrocarbon value chain, adds a unique dimension to their data visualisation in their Panorama Digital Command Center, and accelerates ADNOC towards their 2030 Vision,” he added.
The application will eventually be linked to customers and investors to provide seamless integration among stakeholders, with the enhanced transparency ultimately reducing inherent business risks.
Blockchain is a shared ledger that stores information in blocks. Once the data is recorded, it cannot be altered without alteration of all subsequent blocks, which requires consensus of the network majority. This allows the participants to verify and audit transactions independently and relatively inexpensively.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.