The Abu Dhabi National Oil Company (ADNOC) is embracing the possibilities of blockchain. The company recently announced a successful partnership with IBM.
The two have piloted an IBM blockchain based automated system that integrates the oil and gas production activities across the entire value chain. The platform can be used for tracking, validating and executing transactions at every stage, going right from the production site to the consumer.
Making the Oil and Gas Industry More Efficient
The latest implementation of blockchain technology by ADNOC will help in reducing the time taken to execute transactions between the operating companies of ADNOC. It will be helpful in improving the operational efficiencies of the company across its value chain. It will also be helpful in improving the reliability of production data by helping to make transactions more transparent.
The project was announced during World Energy Capital Assembly in London by Abdul Nasser Al Mughairbi, digital unit manager at ADNOC. The company also focused on its ambitions and early successes in embedding Blockchain and upcoming technologies like AI to its business to help unlock new value in their business, improve operational efficiency and drive profitability.
Believing in Blockchain
Al Mughairbi commented on the adoption of blockchain at ADNOC, saying:
“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.”
He called blockchain a “game changer” and suggested that the use of the technology will help in noticeably reduced operating costs as it eliminates time and labor consuming processes and helps in the generation of long-term sustainable value. The goals align with the 2030 smart growth strategy adopted by the company.
VP of Chemicals and Petroleum Solutions at IBM Zahid Habib said that the pilot would help ADNOC take a huge step forward in asset provenance, allowing it to track every molecule of oil, right from the oil well to the consumer. It will digitally reinvent the hydrocarbon value chain of the company.