The trade in physical goods has historically been a cumbersome process that required mountains of documents, including letters of credit, invoices and inspection certificates. VAKT is using a blockchain platform to circumvent documents and offer a safer way to complete a commodity trade.
Above all, the technology will reduce the time and costs necessary to complete a business. In a previous blockchain process for a soy trade by Louis Dreyfus Commodities, processing time was reduced to one-fifth of the traditional model. Operators are also able to monitor progress in real time and verify data, as well as reduce the risk of fraud.
Chevron, Total and Reliance Industries support VAKT, a digital platform for crude oil based on the blockchain launched at the end of last year. They join a consortium of investors that includes BP, Royal Dutch Shell and Equinor, as well as the Gunvor, Mercuria and Koch Supply & Trading dealers.
"Total supports industry initiatives to digitize the post-trade processes of goods for a while," said Thomas Waymel, President Trading & Shipping of TOTAL. "We consider an important step forward towards safer, faster and cheaper logistics operations, and we are committed to helping launch the VAKT blockchain platform to a complete digital ecosystem on various markets, and we aim to simplify the day-to-day work of our logisticians in Europe. in the Americas and Asia ".
T.D.C. Prasad, executive director of Reliance Industries, said: "The VAKT platform will contribute to the transition from traditional systems that involve the manual exchange of information between participants towards an integrated platform, thereby improving transparency, data security and 39; acquisition of efficiencies ".
Colin Parfitt, President of Chevron Supply and Trading, said: "Chevron is joining the VAKT consortium to stay at the forefront of technology development and to advance the industry in the blockchain space"
With Chevron, Reliance and Total on board, VAKT has five of the top ten largest oil and gas companies by market capitalization as VAKT investors.
The platform will initially manage the negotiations in the main contract for the North Sea crude oil and should be extended to all physically negotiated energy products.