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

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.


Oil prices surge after attacks hit Saudi output

Updated 16 September 2019

Oil prices surge after attacks hit Saudi output

  • The Houthi attacks hit two Aramco sites and effectively shut down six percent of the global oil supply
  • President Donald Trump said Sunday the US was ‘locked and loaded’ to respond to the attacks

HONG KONG: Oil prices saw a record surge Monday after attacks on two Saudi facilities slashed output in the world’s top producer by half, fueling fresh geopolitical fears as Donald Trump blamed Iran and raised the possibility of a military strike on the country.
Brent futures surged $12 in the first few minutes of business — the most in dollar terms since they were launched in 1988 and representing a jump of nearly 20 percent — while WTI jumped more than $8, or 15 percent.
Both contracts pared the gains but were both still more than 10 percent up.
The attack by Tehran-backed Houthi militia in neighboring Yemen, where a Saudi-led coalition is bogged down in a five-year war, hit two sites owned by state-run giant Aramco and effectively shut down six percent of the global oil supply.
Trump said Sunday the US was “locked and loaded” to respond to the attack, while Secretary of State Mike Pompeo said: “The United States will work with our partners and allies to ensure that energy markets remain well supplied and Iran is held accountable for its aggression.”
Tehran denies the accusations but the news revived fears of a conflict in the tinderbox Middle East after a series of attacks on oil tankers earlier this year that were also blamed on Iran.
“Tensions in the Middle East are rising quickly, meaning this story will continue to reverberate this week even after the knee-jerk panic in oil markets this morning,” said Jeffrey Halley, senior market analyst at OANDA.
Trump authorized the release of US supplies from its Strategic Petroleum Reserve, while Aramco said more than half of the five million barrels of production lost will be restored by tomorrow.
But the strikes raise concerns about the security of supplies from the world’s biggest producer.
Oil prices had dropped last week after news that Trump had fired his anti-Iran hawkish national security adviser John Bolton, which was seen as paving the way for an easing of tensions in the region.
“One thing we can say with confidence is that if part of the reason for last week’s fall in oil and improvement in geopolitical risk sentiment was the news of John Bolton’s sacking ... and thoughts this was a precursor to some form of rapprochement between Trump and Iran, then it is no longer valid,” said Ray Attrill at National Australia Bank.