S&P Global Platts’ network will allow market participants to submit data on oil storage on a weekly basis to the UAE's Fujairah Oil Industry Zone (FOIZ). It will be the first real-world products utilizing blockchain tech in the oil industry.
According to Mamdouh Malek Azizeh, commercial director of Fujairah Oil Terminal FZC, the blockchain will allow FOIZ terminal operators to deliver their inventory data in a "more efficient and secure environment".
As part of our ongoing commitment to digital transformation in the energy sector and delivering innovative solutions, we are excited about the opportunity to engage with market participants to discuss ways of deploying this technology more broadly to help improve efficiency and manage risk in a secure environment.
Platt's senior director of innovation and digital strategy
He also stated that the "full blockchain deployment" is a first for the oil markets.
S&P Global Platts informed about its plan after other companies have revealed projects aimed to bring blockchain's potential to the oil industry. Previously, IBM announced the development of a blockchain crude oil trade finance platform in March 2017. In the same month, Dutch bank ING informed that it had piloted an oil trading platform built with ethereum.