According to Reuters American press on January 16, one of the largest multi-national American energy companies Chevron, besides two other big companies have joined Vakt Blockchain platform to trade energy commodities located in the United Kingdom.
Chevron American oil and gas company, managed by John Watson and with the average daily production of 3.1 million petrol gallons is recognized as the world’s largest multinational companies. Its headquarter is in San Ramon, California and it works in more than 180 countries. Chevron company is active in all oil and gas fields in addition to producing different renewable energy types.
Its scope of activities include exploration, extraction, refinery, marketing, and transferring crude oil, natural gas, gas condensates, producing a wide range of chemicals and petrochemical products and electricity production and it is one of six big oil companies in the world and categorized as Super Major besides ExxonMobil, BP, Total, ConocoPhillips and Royal Dutch Shell or Shell.
The vakt platform which is supported by JPMorgan’s Quorum Blockchain technology startup has turned into a digital transaction platform and will revolutionize the oil trade in the whole world. It is the first Blockchain-based transaction platform to replace physical transactions of oil and its derivatives.
Common physical transactions of the goods have a hard and time-consuming process in which numerous documents such as credit notes, invoices and revision licenses are applied, and they are sent through Email, fax or post.
Hence, the old and traditional method of paper-based oil and gas transaction processes were reviewed and revised according to Blockchain and by an innovative consortium including Shell, BP, ABN Amro, ING, and Societ Generale.
Shell multinational oil and gas company located in the U.S., owning more than 25000 gas stations, has the largest fuel supply network in the country. It has around 22000 employees, and its headquarter is in Houston, Texas.
Moreover, BP global energy company in London, United Kingdom, was recognized as the third biggest oil companies in the world and the fourth one in case of income level.
The largest international branch of BP company is in the U.S which is considered the second producer of oil and gas in the U.S. The daily average of oil production of this company is 3.4 million gallons and works in 80 countries around the world. In addition, it has the ownership of 18300 gas stations around the world.
ABN Amro, a Dutch financial services and banking company with its headquarter in Amsterdam was established in 1991 after merging of ABN and Amro Banks. It works in different corporate banking, micro banking, dedicated banking, investment banking and wealth management. It is the Netherland’s second bank which is considered the eighth largest bank in Europe in case of the asset. Moreover, it was ranked the fifteenth in the largest banks of the world in 2012.
ING Multinational Banking and financial services group is a valid international company headquartered in Netherland and was established in 1991.
Further, French Societ Generale financial services and banking group is one of the largest European banks which has dramatic activities in the field of international trade. Its headquarter is located in La Défense Paris.
Its activities are summarized in three parts of retail banking, specialized financial services, banking services, venture investment, and global investment management and its related services. It is the second bank in France (after BNP and Pariba) and the eighth one in Europe.
Before Chevron, Total, which is a large multinational French oil and gas company, has joined the Vakt Blockchain platform along with Indian Reliance Industries.
Reliance company which now focuses on oil and gas industries is a Dutch cluster company which started working as a weaving factory in 1966. It is one of the biggest Indian industrial, commercial companies and is considered as the second Indian big companies (after Indian gas company) in case of the degree of annual income. Reliance achieved the nineteenth rank in 2012 among the world’s largest companies.
French Total oil and gas company was established in 1924 and is among six big oil companies of the world. It has 30 branches around the world and is active in all areas of oil and gas.
Vakt creators believe that implementing these trade processes on Blockchain will make transaction activities faster, cheaper and safer. The published news show that this agreement is a step toward quicker and more secure logistical operations.
Thomas Waymel, business general manager and global transfer, pointed out in a statement that: “generally we are supporting industrial plans to digitalize post-trade commodity processes.
P.M.S Prasad, the executive manager of Reliance company, told that this company was happy to be active in manufacturing and producing Vakt Blockchain-based platform. He pointed to Vakt as a revolutionary factor in energy transactions.
As Cointelegraph news website reported on November, 12, in last fall, pioneer oil companies such as BP, Shell, Equinor agreed to join big banks and businessmen to found Vakt Blockchain platform to trade energy commodities.
Then, at the end of November, Cointelegraph news website announced in a post that primary platform users were introduced. They included BP, Shell, Equinor and as well as Gunvor and Mercuria Energy.
Afterward, in September last year, a blockchain platform was unveiled to fund trade commodities by some big banks and the industry activists such as Shell.
Gunvor is a multinational company in goods trade which was recognized as the fourth oil trader of the world in 2012. It was founded in 1999 in Amsterdam, Netherlands and has headquarters in many countries.
In addition, a private multinational Swiss private company Mercuria works in commodities trade too which has done venture investments in the world market of energy and concentrates on crude oil and natural oil products, gasoline, natural gas, coal, biodiesel, vegetable oil, and greenhouse gases. It was established in 2004 and is considered one of five traders of the global energy market.
At first, the Vakt Blockchain platform was accessible just for consortium members. With growing the team and development of this platform, it seems to be available for all the market in the near future.
Oil commodities are just the first steps for this platform; others such as the governmental sector, healthcare, energy, and petrochemistry are along with the Blockchain-based platform.