A blockchain platform built by Vakt Global, a consortium of major companies including Shell and BP, has been launched to bring new efficiencies to the trade in energy commodities.
According to a Tweet On Thursday, the platform is ready to facilitate the trade in crude oil among the companies producing raw materials, claiming to be the "first-grade blockchain" solution in the oil and gas market.
"Our 5 investors in the BFOET market are now operating on the VAKT platform!" Reads the tweet. The BFOET market comprises five North Sea crude oil fields: Brent, Forties, Oseberg, Ekofisk and Troll. The company plans to expand into other markets in the next year.
The blockchain platform aims to help commercial companies replace paper documents with smart contracts. By automating parts of the process, the move should help companies cut costs, reduce errors and make post-trade processes more efficient.
The "first line of code was written only in May of this year", VAKT Global He said in a LinkedIn post on Thursday, adding that, along with his Deloitte partners and the IT company ThoughtWorks, he managed to deliver this project "on time and on budget".
The consortium was format at the start of this month. In addition to Shell and BP, other members of the group include the Norwegian energy company Statoil, sales companies such as Gunvor, Koch Supply & Trading and Mercuria, and banks including ABN Amro, ING and Société Générale.
Over time, the company aims to "lead the migration of all forms of data on energy transactions to the blockchain, improving data quality, further strengthening security and increasing the speed of industrial settlements, reducing the cost per industry participants, "said Vakt. in a launch announcement.
Image of the North Sea oil rig through Shutterstock