Oil companies Shell, BP, and Equinor have partnered with several banks and trading houses to launch a blockchain platform, Vakt, for energy commodity trading, cutting costs up to 40 percent in the post-trade resolution.
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Banks ING, ABN Amro, and Societe Generale, along with trading houses Mercuria, Gunvor, and Koch Supply & Trading have inked a partnership to transition traditional “cumbersome” paperwork onto the blockchain, reducing time and increasing trading efficiency.
The platform is slated for launch by the end of November in the North Sea oil market with more plans for 2019.
“In 2019 we will look at ARA barges, waterborne markets and US crude pipelines. And by January we expect the first licensees will come on board, in addition to our shareholders,” said Lyon Hardgrave, product development vice president of Vakt.
Hardgrave added that Vakt is taking requests to look at U.S. gas and petrochemicals.
During a recent summit in London, commodity and energy information provider S&P Global Platts stated that a substantial majority of participants expect blockchain applications to reach mass retail market adoption by 2025.
In February, S&P Global Platts trialed blockchain solutions for the oil industry to “allow market participants to submit weekly inventory oil storage data,” which was deployed in the United Arab Emirates’ Fujairah Oil Industry Zone (FOIZ).
In Switzerland, global banks, trading firms, and a prominent energy company founded a blockchain platform, komgo SA, for financing the trading of commodities, sharing several participants of Vakt including Shell, Koch Supply & Trading, ING, ABN, Mercuria, Societe Generale, and AMRO.