IBM Partners With Abu Dhabi National Oil Firm
December 10, 2018 1:16 pm
On December 29, the Abu Dhabi National Oil Company (ADNOC) published a press release announcing its partnership with technology giant IBM. The collaboration aims to build a blockchain supply chain system.
ADNOC is the world’s one of leading energy and petrochemical groups, with a daily output of around 3 million barrels of oil and 10.5 cubic feet of natural gas. The new platform will track the quantities and financial values of each bilateral transaction between the involved companies, automating the accounting.
We've just announced #ADNOC's successful collaboration with @IBM, piloting a #Blockchain-based automated system to integrate oil and gas production across the full value chain. pic.twitter.com/phojeny8c3
— ADNOC Group (@AdnocGroup) December 9, 2018
Abdul Nasser Al Mughairbi, Digital Unit Manager, ADNOC recently attended the World Energy Capital Assembly in London. While speaking at the summit, he explained that this platform is the first application of blockchain in oil and gas production.
Al Mughairbi said:
“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.”
Zahid Habib, an IBM representative also shared his opinion regarding the partnership with the Abu Dhabi National Oil Company. He said that the system has the capacity of tracking irrefutably, every molecule of oil, and its value, from well to customer.
The press release included that the system helps to decrease the time used for executing transactions between [its] operating companies. It also increases operational efficiencies across its full value chain. The platform also aims to enhance the reliability of production data by allowing greater transparency in transactions.