Vakt Global, a blockchain company, has released today, November 29, a new consortium venture that was created together with major oil companies like Shell and BP and that intend to bring more efficiency to the energy commodities trading. A recent tweet of the company has affirmed that the platform is now ready to be used.
The main goal is to use the new blockchain platform to trade in crude oil between different commodity companies. At the moment, the company has 5 investors within the BFOET market and they will trade on the VAKT platform, which is now live. The market known as BFOET is made by Forties, Brent, Oseberg, Ekofisk and Troll, five North Sea crude oil companies.
Our information is that the consortium was formed in November 2017, therefore, it took almost a year of planning and development to release the platform. The companies that will be a part of it are Shell, BP, Statoil (a Norwegian energy firm), Gunvor, Koch Supply & Trading, Mercuria, ING, Societe Generale and ABN Amro.
Today is a BIG day for VAKT! Our 5 investors within the BFOET market have now gone live on the VAKT platform! Time for a quick update from the CEO! First enterprise grade blockchain solution within the oil & gas market! @Level39CW #commodities #blockchain pic.twitter.com/cvoF7F1egF
— Vakt Global (@VaktGlobal) November 28, 2018
Blockchain To Make It All Easier
The idea is to use the blockchain technology as a basis to help these companies trade and to replace their old paper-based system, which is very obsolete. Now, they will be able to use smart contracts and to automate parts of the process, which will greatly reduce costs and errors, at the same time that all the post-trade processes will be highly more efficient than they are now.
This way, a centuries-old process will be abandoned by these companies and they will save money. With the migration of all this data to the blockchain, the consortium is hoping to increase the efficiency of the whole process and improve the quality of the data as much as possible at the same time that the security is strenghtened and the speed of the process is heavily improved.
VAKT will be based on JP Morgan’s Quorum blockchain and the platform will be the first functional blockchain trading platform in the oil and gas industry, which is something very positive.
While the product was launched today, it will only be available for the wider market from January 2019 onwards.