The much expected collaboration between Abu Dhabi National Oil Company (ADNOC) and IT giant, IBM to pilot a blockchain supply chain system is now complete.
This was made known by Abdul Nasser Al Mughairbi, ADNOC Digital Unit Manager, at the recent World Energy Capital Assembly, in London.
The partnership seeks to see ways the Blockchain-based automated system would integrate oil and gas production across the full value chain. The system would also provide a secured platform for tracking, validating and executing transactions at every stage, from production well to the end customer.
This would not only reduce the time it takes to execute transactions between ADNOC’s operating companies and significantly increase operational efficiencies across its full value chain but will also improve the reliability of production data by enabling greater transparency in transactions.
Al Mughairbi said, “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.
“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,” he added.
More so, Zahid Habib, IBM’s Chemicals and Petroleum Solutions VP, while speaking added that this is a step in the right direction, according to him, “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.”