A project to modernize energy post-trade processes using blockchain technology is set to go live by the end of the year, platform consortium Vakt said Monday at S&P Global Platts Digital Commodities Summit in London.
The project, backed by oil companies BP, Shell and Equinor, is intended to move companies from paper-based trading contracts and operations documentation to digital contracts to cut costs, reduce the risk of errors and make back-end trading operations more reliable and efficient.
Besides BP, Shell and Equinor, members of the Vakt consortium include Gunvor, ABN AMRO, Koch, ING, Mercuria and Societe Generale.
“We expect to go live at the end of November in the North Sea oil market,” said Lyon Hardgrave, Vakt product development vice president, S&P Global/Platts reported. “In 2019 we will look at ARA barges, waterborne markets and U.S. crude pipelines. And by January we expect the first licensees will come on board, in addition to our shareholders.” Read more here.