Energy markets data provider S&P Global Platts has announced the commercial deployment of a blockchain platform for sharing oil inventories in the United Arab Emirates (UAE).
Marking one of the first real-world products utilizing blockchain tech in the oil industry, Platts’ network to allow market participants to submit data on oil storage on a weekly basis to the UAE’s Fujairah Oil Industry Zone (FOIZ), as well as the overseeing body FEDCom.
The technology will allow FOIZ terminal operators to deliver their inventory data in a “more efficient and secure environment,” said Mamdouh Malek Azizeh, commercial cirector of Fujairah Oil Terminal FZC, in a release.
Platt says the network improves upon the “manual and unstructured” process traditionally used by terminal operators when sharing weekly oil inventories to FEDCom. The solution also means FEDCom no longer needs to undertake manual validation and collation of the data.
Stating that the “full blockchain deployment” is a first for the oil markets, James Rilett, Platt’s senior director of innovation and digital strategy, commented:
“As part of our on-going commitment to digital transformation in the energy sector and delivering innovative solutions, we are excited about the opportunity to engage with market participants to discuss ways of deploying this technology more broadly to help improve efficiency and manage risk in a secure environment.”
The news comes after other notable firms have revealed projects aimed to bring blockchain’s potential to the oil industry.
In March 2017, a group of companies including IBM announced the development of a blockchain crude oil trade finance platform. The system allows parties to view transaction data as it is published on the blockchain, as well as hosting documentation and updates on shipments, deliveries and payments.
In the same month, Dutch bank ING revealed it had piloted an oil trading platform built with ethereum that had been used for live transactions.
Oil drums image via Shutterstock