Shell and BP are now selling oil through the underlying technology of Bitcoin
Shell and BP are now using a Blockchain-based trading platform for crude oil, which they hope will solve commercial and liquidation inefficiencies
Vakt is the first to market several pilot plans that have been in development since January 2018. It is courtesy of a consortium of large oil companies, global energy traders and investment banks. These include BP, Shell, Mercuria Energy Group, ABN Amro , ING and Gunvor Group.
Initially, these companies can only access Vakt and is limited to contracts for five grades of North Sea crude. These grades set the Brent crude benchmark for world oil prices
The platform will open access to third parties in January of next year. The inclusion of US crude oil pipelines is also scheduled for early 2019. and European refined products such as gasoline.
The reason for this interest in this sector is the assurance that the blockchain (Blockchain in English) can reduce costs and increase profit margins by eliminating intermediaries. The industry expects that it also increases transparency and security, and resolves commercial and liquidation inefficiencies
Vakt accomplishes this through the digitization and centralization of the mountain of papers previously required by each party in a contract. “Vakt is the logistical arm … Once a deal is executed through our record book, it is driven through Vakt. The next stage is financing, “said Eren Zekioglu of Gunvor Group.
Funding, including digital letters of credit, will be provided with a future link to the financial platform based in Geneva. Komgo is expected to become operational by the end of the year and will focus on trade in a wide range of products, from oil to wheat. Shell’s chief operating officer, Andrew Smith, said about the project:
“Collaborating with our colleagues and some of the key players in the industry is the best way to combine market experience and achieve the scale needed to launch a digital transaction platform that can transform the way we all do business.”
Of course, on a much smaller scale, the UK has been exchanging energy in the Blockchain since April of this year. The apartment blocks have been selling solar energy, in an urbanization in Hackney, London, through Verv’s renewable energy trading platform.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.