logo
Plus   Neg
Share
Email

Energy Majors Chevron, Total, Reliance Join Blockchain-powered Vakt Platform

vakt-blockchain-011619-lt.jpg

Energy majors Chevron, Total S.A. and Reliance Industries have joined the blockchain-based platform Vakt as strategic investors. They also become early users of VAKT's blockchain-powered post-trade processing and management platform for commodities.

London-based VAKT is an independent company created and backed by nine leading energy companies, commodity traders and banks - BP, Equinor, Shell, Gunvor, Mercuria, Koch Supply & Trading, ABN Amro, ING and Societe Generale.

The platform was created by VAKT in partnership with global software consultancy ThoughtWorks and supported by JPMorgan's Quorum private distributed ledger. It was launched in late November for physically traded BFOET crude oil contract. It will extend later to all physically traded energy commodities.

With the addition of Chevron, Reliance and Total into the consortium, five of the world's top ten largest oil and gas companies by market capitalization have become VAKT investors. The first public launch to non-consortium licensees is expected for early 2019.

The platform eliminates the age-old problems in reconciliation and paper-based processes by managing physical energy transactions from trade entry to final settlement on blockchain to transform the full trade lifecycle. Trade finance will also be fully digitalized with an integrated banking marketplace.

It also provides a single source of truth for buyers and sellers that are safeguarded with an immutable, distributed audit trail on blockchain.

The blockchain platform is expected to provide 30 to 40 percent efficiency and trade finance savings through improved speed and security, which benefits everyone along the supply chain from market participants to customers.

In September, a consortium of fifteen of the world's largest banks, trading companies, an energy major, and an inspection company had set out to develop a similar decentralized Ethereum blockchain-powered commodity trading platform called "komgo SA in partnership with ConsenSys. It is expected to catalyze the world's commodity trade finance network.

The fifteen investors in the venture include ABN Amro, BNP Paribas, Citibank, Crédit Agricole CIB, Gunvor, ING, Koch, Macquarie, Mercuria, MUFG Bank, Natixis, Rabobank, Shell, SGS and Societe Generale.

For comments and feedback contact: editorial@rttnews.com

Follow RTT