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Major Oil Firms, Banks Partner to Launch Blockchain Platform for Energy Commodity Trading

Major oil companies BP, Shell, and Equinor have united with large banks and trading houses to launch a blockchain-driven platform Vakt for energy commodity trading. The partnership was reported by independent news agency covering energy and commodities markets S&P Global Platts Monday, Nov. 12.

Apart from the three oil companies mentioned above, Vakt includes banks ABN Amro, ING, and Societe Generale, along with trading houses Gunvor, Koch Supply & Trading, and Mercuria. The blockchain solution, first announced in November 2017, will enable major industry players to move from “cumbersome” paperwork to smart contracts, thereby helping to reduce time spent on operations and make trading more efficient.

S&P Global Platts itself has previously trialed blockchain solutions for oil industry. In February 2018, the company announced it was launching a decentralized platform that would “allow market participants to submit weekly inventory oil storage data.” The platform to track oil storage was deployed in the UAE’s Fujairah Oil Industry Zone (FOIZ).

A platform similar to Vakt already exists in Switzerland, where a group of major global banks, trading firms, and a leading energy company launched a joint venture, dubbed komgo SA, to oversee a new blockchain-based platform for financing the trading of commodities. The initiatives share some of the same participants, including ABN AMRO, ING, Koch Supply & Trading, Mercuria, Shell, and Societe Generale.

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