Abu Dhabi reveals blockchain plan as it strikes oil, gas concession deals

The Abu Dhabi National Oil Company said Sunday it is collaborating with IBM over a Blockchain-based system for oil and gas production transactions. (ADNOC)
Updated 10 December 2018
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Abu Dhabi reveals blockchain plan as it strikes oil, gas concession deals

LONDON: Abu Dhabi on Sunday struck two oil and gas concession deals, as well as announcing plans to use blockchain technology in the field of energy.
The emirate’s state fund Mubadala bought a 20 percent stake in the Nour gas field off the coast of Egypt from Italian energy company Eni, Reuters reported.
Egypt’s petroleum ministry also said that energy giant BP will buy a 25 percent stake in the concession from Eni, it was reported.
In a separate deal, the Abu Dhabi National Oil Company (ADNOC) said that it had awarded a subsidiary of China ZhenHua a 4 percent stake in its onshore oil concession, previously held by the CEFC China Energy Company.
“With China ZhenHua Oil, we will pursue mutually beneficial cooperation, share business growth opportunities and work together as we deliver on our 2030 smart growth strategy,” Sultan Ahmed Al-Jaber, UAE minister of state and ADNOC Group CEO, said in a statement.
China ZhenHua Oil is 100 percent indirectly owned by the Assets Supervision and Administration Commission of the State Council, a Chinese-government agency, the statement added. It operates 11 oil and gas upstream projects in six countries, with gross production of close to 10 million metric tons per year.
ADNOC also said on Sunday that it is collaborating with IBM to pilot a blockchain-based automated system to integrate oil and gas production transactions.
“The groundbreaking system provides a secure platform for the tracking, validating and execution of transactions at every stage, from production well to the end customer,” it said in a statement.
According to ADNOC, using blockchain technology will reduce the time it takes to execute transactions between its operating companies and “significantly” increase operational efficiency.


Saudi Arabia to remain oil exporting kingpin says IEA boss

Updated 30 min 19 sec ago
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Saudi Arabia to remain oil exporting kingpin says IEA boss

  • IEA Executive Director Fatih Birol: The Middle East and especially Saudi Arabia will remain the largest exporter of oil for many years to come
  • Fatih Birol: For this year, let’s pay special attention to US shale because some observers last year made wrong assumptions and underestimated US shale growth

LONDON: Saudi Arabia will remain the largest global oil exporter for years to come despite the growth of the US oil sector, according to the chief of the International Energy Agency (IEA).

IEA Executive Director Fatih Birol told the World Economic Forum in Davos that despite a rapidly changing global energy sector, the Kingdom would remain a key player.

But he added that the importance of the US shale sector should not be underestimated as it had been in the past.

“The Middle East and especially Saudi Arabia will remain the largest exporter of oil for many years to come,” he told an energy panel at the annual gathering of global political and business leaders in the Swiss mountain resort.

Official data from Saudi Arabia released on Monday showed the Kingdom’s crude oil exports in November rose to 8.235 million bpd from 7.7 million in October.

“The US produce a lot of oil but most of the time they use that at home for domestic purposes. So even though US is now a very important oil producer, the Middle East will remain the largest exporter of oil.

“But for this year, 2019, let’s pay special attention to US shale once again because some of the observers last year I think made wrong assumptions and underestimated US shale growth,” said Birol.

The huge growth of the US shale oil industry has transformed the energy landscape in the US, which until last month had been a net importer of oil for the last 75 years.

Oil prices fell nearly 2 percent on Tuesday, pushed lower by signs of a slowdown in China.