The Oil and Gas Blockchain Consortium (OOC) successfully piloted a blockchain-based system for Authorization for Expenditure (AFE) balloting in partnership with GuildOne, a Canadian technology provider, as a group of 10 major global oil and gas firms including heavy-hitters like Chevron and Shell has successfully digitized industry balloting using blockchain.
On December 18, it has been reported that the AFE balloting proof-of-concept (PoC) is the first initiative of its kind and intends to allow participants to send ballots and make elections digitally using blockchain technology.
However, as per the report, AFEs are used in the oil and gas industry in order to approve capital and expense projects as well as calculate working interests by members of a joint operating contract. As AFE balloting has been done manually for years, blockchain-powered digitization intends to cut the time needed for the traditional paper-based process.
Likewise, the PoC aims to improve the approval process and provide immutable records of the final working interests, at the same time reducing errors by using smart contracts to calculate working interests automatically.
Rebecca Hofmann, the Chairman of the OOC, noted that the PoC was completed by all ten consortium members in less than four months. She outlined that the new blockchain-based oil and gas industry project has demonstrated the power of distributed ledger technology as well as its ability to “transform fundamental oil and gas business activities.”
JD Franke, the Vice Chairman of the OOC, said:
“AFE balloting represents just one of several use cases with common industry pain points being advanced within the consortium. The success of this POC demonstrates how the industry can use blockchain technology to address these pain points, and we expect to leverage learnings from this project to realize key blockchain frameworks and guidelines for the oil and gas industry.”
Thus, according to the recent announcement, the consortium includes 10 members to date, including Chevron, ConocoPhillips, Equinor, ExxonMobil, Hess, Marathon, Noble Energy, Pioneer Natural Resources, Repsol, and Shell.
Source: businesswire.com | cointelegraph.com