Oil titans Chevron, Total, and top Indian refiner Reliance Industries have joined blockchain-based platform Vakt. The companies join the likes of Shell, BP, ABN Amro, ING, and Societe Generale, London-based Vakt announced on Tuesday.
Paper-based trading process has been around for over a century in the oil and gas industry. Vakt was the first blockchain platform designed to increase efficiency and boost transparency in commodities trading. The platform was launched in 2017 by BP and Royal Dutch Shell, Norway’s Equinor, Mercuria Energy Group, and Koch Supply and Trading, and Gunvor Group.
Traditionally, the buying and selling of energy commodities are paper-based. This implies that credit notes and invoices are completed manually before emailed or faxed to the relevant parties. Vakt was developed to transfer the process to blockchain and make it faster, cheaper, and more secure. The original shareholders of the platform began using the system two months ago, starting with the North Sea crude oil trading.
Chevron, Total, and Reliance joining the consortium will see the platform cover a wider market. Total’s head of trading and shipping Thomas Waymel stated that “Total has been supporting industry initiatives to digitize cargo post-trade processes for some time. We view them as a major step forward towards safer, faster and cheaper logistical operations. We are committed to contributing to the rollout to various markets of the VAKT blockchain platform.”
Blockchain technology is viewed as a solution to inefficiencies of trade and settlement. It is also expected to boost transparency and reduce the risk of fraud in the oil industry.
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