A blockchain-based oil trading platform called Guard and developed by a consortium with BP and Shell, which began operating this week, reports Reuters, quoting the consortium. The goal is to exploit the potential of the distributed management technology for cheaper, non-medium, yet secure transactions.
The platform's news first appeared last year when blockchain continued to gain popularity. The consortium behind the Vakt also includes trading houses Gunvor and Mercuria, as well as Koch Supply & Trading. The platform was supported financially by Dutch ABN Amro, ING and French Societe Generale.
In January 2017, Mercuria, in cooperation with ING and Societe Generale, announced that it prepared the first oil store using blockchain technology. The trade involved an African crude shipment to Mercuria shareholder ChemChina. When announcing the test at Davos World Economic Forum, Mercury's CEO Marco Dunnand said: "The energy industry must digitize more and more in oil production, refining, shipping. So traders must also participate."
Now the companies involved in the launch of Guard is the first to use it, but next year the consortium says that the platform will be opened to other participants in January. Basically, the platform will only process contracts for the five crude oil grades coming from the North Sea that form the Brent International benchmark. At a later date it will include US oil pipelines and loads of petrol and other petroleum products for northern Europe.
"Guard is the logistical arms … When an agreement is made through our book of records, it is pressed through Vakt. The next stage is the financing, and the link with Komgo gives access to more banks," said Reuters. blockchain-based trading platforms in the oil industry currently being developed. One of them, combo, is also due to the launch before the end of the year. The platform is funded by most participants in the Vakt consortium and 1[ads1]0 international banks.
By Irina Slave for Oilprice.com
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