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 and UAE launch a new joint cryptocurrency

Updated 20 January 2019
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Saudi Arabia and UAE launch a new joint cryptocurrency

  • The cryptocurrency will be limited to banks during its first stages
  • The program will also help the two countries evaluate the monetary policies of a centralized currency

Saudi Arabia and the UAE have launched a joint cryptocurrency during the first meeting of the Saudi-Emirati Coordination council Saturday in Abu Dhabi, UAE’s national press agency WAM said.

The cryptocurrency will be limited to banks during its first stages, until the governments have a better understanding of how Blockchain technology operates cross-borders.

The currency operates on the use of a “distributed database between the central banks and the participating banks from both sides,” aiming to protect customer interests, set technology standards and assess cybersecurity risks. The new program will also help evaluate the impacts of a central currency on monetary policies.

During the meeting, representatives of Saudi Arabia and the UAE also signed the Joint Supply Chained Security Cooperation program, which tests the two countries abilities to provide vital supplies during times of crisis and national emergencies, as well as share expertise and knowledge in the field.

All 16 members of the executive committee of the council followed up on the execution of the initiatives mentioned in the Strategy of Resolve.

Representatives also set five other initiatives to enhance the cooperation between the two countries, such as facilitating the traffic between ports, improving airports to make it easier for people with disabilities to travel, creating a financial awareness program for children aged 7-18, starting a joint platform to support local SMEs, and the integration of civil aviation markets,

The committee was headed by Mohammad bin Abdullah Al-Gergawi, minister of cabinet of affairs and the future of UAE, and Mohammed bin Mazyad Al-Twaijri, minister of economy and planning in Saudi. The committee will also monitor the implementation of the initiatives.