Sinochem Energy Technology, a subsidiary of the state-operated Chinese oil and gas company Sinochem Group, has revealed plans to establish a blockchain platform with fellow oil firm Shell and investment firm Macquarie.

Reported by The Block, the three signatories would jointly develop a blockchain platform to handle crude oil sales.

Blockchain Platform to Enhance Crude Oil Operations

Citing Reuters sources within the oil industry in Beijing, the Block report indicated that Sinochem Energy Technology had secured the deal with Shell and Macquarie in July 2019. Under the agreement, the three will jointly develop and realize a blockchain platform dubbed ‘Gateway’.

Information about Gateway so far has shown it to be a blockchain-powered system that would enhance the trade and settlement of crude oil, eliminating the current inefficiencies in how the commodity is traded. The platform should also help with improving transparency and protecting against fraud in the industry.

Crude Oil Blockchain Platform Sought Across Industry

Sinochem Energy Technology has reportedly valued the planned platform at close to US$14 million and is likely staking considerable returns on its completion, with sources revealing it is currently in a “deep loss.” 

Nonetheless, the company has attracted interest from large firms including PetroChina Co. and COSCO Shipping Energy Transportation Co. Ltd.

The fuel industry appears to be in dire need of a trading platform for crude oil, with Shell also working with British company BP on a system built by Vakt Global.

Source: www.theblockcrypto.com

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