The London-based blockchain oil trading platform VAKT said on January 16 that oil and gas giants Total, Chevron, and Reliance have joined its new commodity trade platform that is blockchain-powered.
VAKT is already in use by several other huge trading firms since the later months of last year. It is also a pioneer to go live among most blockchain pilot schemes for commodities trading. The firm was developed in 2017 by a conglomerate that comprises of Gunvor Group, oil majors BP and Royal Dutch Shell, Koch Supply and Trading, as well as Mercuria Energy Group.
The original shareholders started using the system in November particularly for North Sea crude oil trading. The other shareholders include Societe Generale, ING, and ABN Amro banks.
VAKT Matches Oil with Blockchain
The trading platform company’s mission is to digitize the entire global commodities trading industry while concurrently creating a trusted, secure ecosystem that is powered by blockchain. In a press release, VAKT confirmed that TOTAL, Chevron, and Reliance have invested and are ready to join the blockchain oil trading platform as new users.
The VAKT platform offers a digital ecosystem for a significant part of the physical post-trade processing in the commodity market. The ecosystem was unveiled on November 28, 2018, for the BFOET crude oil market to operate and manage physical energy transactions from the point of trade entry to the final settlement by leveraging the transparency and auditing prowess of the blockchain.
The platform is expected to provide considerable cost-savings to stakeholders in the oil trade supply chain process by getting rid of all paper-based processes. The President, Chevron Supply and Trading, Colin Parfitt, confirmed that Chevron is joining the VAKT consortium to help the oil industry embrace and adopt blockchain technology.
Thomas Waymel, President of Trading & Shipping for TOTAL, described the adoption of blockchain as a significant step forward towards faster, safer, and cheaper logistic operations. The Executive Director at Reliance Industries, P.M.S. Prasad, was excited to work with VAKT in a transformative era for energy trade execution.
Blockchain technology is gaining ground within the energy sector with several excellent use-cases coming up each day. A noteworthy development is the blockchain-bolstered Virtual Power Plant (VPP) of South Korea which will allow for renewable energies to be traded more efficiently.
VAKT’s Mission Video: