IBM has partnered with the Abu Dhabi National Oil Company (ADNOC) to launch a pilot blockchain supply chain system. ADNOC is United Arab Emirates’ (UAE) national oil company and a global energy leader among oil producers churning out approximately 3 million barrels each day.

The program aims to overhaul the oil supply chain creating a blockchain-based, more secure platform. The new system will allow for smoother, automated transactions and third-party-less validation for each stage of the chain.

According to the ADNOC press release:

” 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.”

A supply chain is the pipeline that facilitates the journey from raw material to end user. The more efficient the supply chain, the more affordable the goods and the more profit for the company. It can also help to reduce waste and improve customer experience. The pilot will track every financial transaction using the distributed ledger to help automate the accounting and auditing processes creating more accurate statistical reports and analysis.

This announcement comes on the heels of VAKT’s blockchain-based oil processing tool now available to industry giants like BP, Shell, and Equinor, just to name a few. It is safe to say that oil processing and trading is a strong use case for blockchain applications. The more global a product and the wider the supply chain the more an industry can benefit from bringing all processes and transactions onto the blockchain for faster more secure production and distribution.

The oil supply chain revolution doesn’t stop here, ADNOC’s press release describes the future of  oil and its success resting in integrating, “other advanced technologies, including Artificial Intelligence, across its business to enhance operational efficiency, drive profitability and unlock new value from oil and gas resources to seize the opportunities created by Oil and Gas 4.0.”

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