Adnoc teams with IBM on blockchain programme

The Abu Dhabi National Oil Company is piloting a blockchain-based automated system with IBM to integrate oil and gas production across its entire value chain.

The collaboration with the US multinational will provide a secure platform for tracking, validating and execution of transactions, right from the production well to the end customer, Adnoc said yesterday.

Blockchain is best known in relation to the cryptocurrency Bitcoin, which it underpins by providing a transparent, secure and de-centralised system for transactions. The technology is being globally adopted increasingly by oil and gas companies. Adnoc said its collaboration is expected to lower costs and increase efficiency.

“Blockchain is a game-changer,” said Adnoc digital unit manager Abdul Al Mughairbi. “It will substantially reduce our operating costs by eliminating time-consuming and labour-intensive processes, strengthen the marketing and trading of our products, and create long-term sustainable value.”

The programme being piloted at Adnoc will track quantities and financial values of every bilateral transaction between Adnoc’s operating companies, automating the entire accounting process.

Gas, condensates, natural gas liquids and sulphur will also be included in the blockchain programme.

“Adnoc takes a massive leap forward in asset provenance and asset financials, which, in its simplest terms, enables the ability to track irrefutably, every molecule of oil, and its value, from well to customer,” said Zahid Habib, IBM vice president for chemicals and petroleum solutions.