A Canadian company has been awarded a contract to demonstrate an automated blockchain solution for authorizing expenditures in the oil and gas industry, Kallanish Energy reports.
The contract was awarded to GuildOne Inc., a Calgary-based blockchain provider and technology company. A consortium of major oil and natural gas companies known as the Offshore Operators Committee’s Oil & Gas Blockchain Consortium made the award.
Consortium members include Chevron, ExxonMobil, ConocoPhillips, Equinor, Royal Dutch Shell, Repsol, Hess, Marathon Oil, Noble Energy and Pioneer Natural Resources.
Authorization commonly used
Authorization for expenditure balloting is a commonly used tool for garnering approval and participation in capital projects governed by joint operating agreements.
Conventional authorization balloting is done manually which is time-consuming, complex and prone to frequent and costly disputes, the companies said.
Blockchain considered promising
Blockchain can streamline the process, using smart contacts to automate balloting processes and working interest calculations and shared, immutable data to reduce disputes, GuildOne said, in a statement. The company intends to demonstrate a proof-of-concept blockchain solution.
“Blockchain is a promising instrument for industry collaboration in oil and gas benefitting all connected parties,” said Rebecca Hofmann, chair of the consortium, in a statement.
”This proof of concept is a step in the right direction to start the transformation of how we handle the joint operating agreement process in the future. The consortium looks forward to leveraging learnings from this project to inform key blockchain frameworks and guidelines for the oil and gas industry,” she said.
First blockchain O&G royalty transaction
In 2018, GuildOne conducted the world’s first blockchain oil and gas royalty transaction on Energy Block Exchange, its energy blockchain network built on R3’s Corda platform. It has since launched…