Global data provider S&P Global Platts is on course to launch the use of blockchain technology to share oil inventories inside United Arab Emirates' (UAE) energy sector. The information aggregator also confirms that the blockchain solution will record detailed submissions of the oil storage data by the industry participants within UAE's Fujairah port.
With the use of blockchain technology on a weekly basis, The Fujairah Oil Industry Zone (FOIZ) will become the leading commercial application of the technology in the energy industry. The FOIZ is one of Middle East's and the world largest storage facility for oil and its products.
Through a press release statement, the new product will incorporate efforts from some of the industry's players and operators to make the project a fully developed data system. The collaboration will comprise FOIZ, FEDCom and terminal operators within the port of Fujairah. FEDCom is the oil regulatory body in charge of UAE's oil exploration and exportation. As a result, the blockchain distributed ledger technology will offer a full-scale commercial asset that FOIZ and the port operators can use to conduct weekly data audits.
That will significantly improve on the manual system of terminal operators having to communicate with FEDCom on the weekly inventory number. The new technology will also decrease the need for manual validation and will automatically authenticate the results from each terminal operator's numbers. Consequently, there is improved efficiency, transparency and reduction in human error.
A senior member of FOIZ, Sohail Iqbal, is on quote indicating that indeed the platform is one of its kind for the oil market and once fully deployed the data provision by blockchain innovations is set to increase in the region and the rest of the global oil markets.
“The team at FEDCom and FOIZ are very excited to be part of this digital transformation that S&P Global Platts has developed. The innovation represents the step forward in Fujairah's aspirations to become a global center for commodity trading. It will provide our terminal operators to be at the lead of technology while at the same time performing at the highest level of security.”