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BP's and Shell's blockchain oil trading platform goes live

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A blockchain-based trading platform is now in place that could help oil majors and commercial companies drastically reduce costs.

Known as Vakt, the platform that was created last year by a consortium of Anglo-Dutch oil giant Shell and British Petroleum (BP), aired Wednesday, according to Reuters.

Other members of the consortium include the global commodity trading company Gunvor Group, the Norwegian energy company Equinor and the energy trading companies Koch Supply and Trading Mercuria Energy Group. Financial institutions such as Société Générale, ING and ABN Amro are also part of the consortium.

Next functionality? Financing

While the platform will initially digitize and centralize the documents generated by all parties to an agreement, a financial element will be added when connected to Komgo, a financing platform that was unveiled at the beginning of the year.

"Vakt is the logistic arm … Once an agreement is executed through our record book, it is pushed through Vakt," said Eren Zekioglu, an executive of the Gunvor Group. "The next stage is financing and the connection with komgo gives access to several banks".

Initially, the Vakt platform will be limited to contracts for five rough grades of the North Sea. However, plans are envisaged to include oil products from northern Europe and the United States.

Vakt is not the only blockchain platform that has been developed for the oil industry in the recent past. In March of this year, CCN reported that the energy industry had invested about $ 300 million in the development of blockchain applications.

Ondiflo by ConsenSys and Amalto

Some of the blockchain platforms for the energy sector that have received significant coverage include Ondiflo, an application dedicated to the digitization and automation of various oil services on the Ethereum blockchain. It was developed by the blocking software company ConsenSys in collaboration with the software developer Amalto.

Specifically, the ondiflo blockchain platform was designed to optimize and improve order-to-cash processes in the upstream, midstream and downstream sectors of the oil industry that are still heavily dependent on paper. The benefits of the platform include faster transaction times and greater overall efficiency that would help reduce costs in a sector with thin margins like the razor.

"As one of our first initiatives in the oil and gas industry, Ondiflo will offer a solution in which all operators and service companies will benefit from digitalisation, automation and the continuous exchange of data and information. 39; immutability of their records … "ConsenSys co-founder, Joe Lubin, said at the time.

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