UAE - S&P Global Platts has announced it is deploying a blockchain network to allow market participants to submit weekly oil storage data to Fujairah Oil Industry Zone (Foiz) and the regulator, FEDCom.
The Foiz hosts the Middle East's largest commercial storage capacity for refined oil products.
In collaboration with Foiz, FEDCom and the 11 terminal operators that use the facility, S&P Global Platts has developed a full-scale commercial deployment of the blockchain-distributed ledger technology. This offers Foiz and its port operators security, together with ease of use, and a full audit trail to collate weekly inventory oil products storage data.
The new technology improves the manual and unstructured process by which the terminal operators communicate their weekly inventory numbers to FEDCom. The new solution also alleviates the need for FEDCom to undertake manual validation and aggregation of each terminal operator's numbers, reducing the scope for human error.
James Rilett, senior director of innovation and digital strategy, S&P Global Platts, said: "We believe our project, in conjunction with our partners in Fujairah, represents a first for oil markets by offering a full blockchain deployment to provide market participants with data that is increasingly critical in the region and to the global oil markets."
Sohail Iqbal, member development committee, Foiz, and Captain Salem Al Hmoudi, member of FEDCom, said: "The innovation represents the next step forward in Fujairah's ambitions to become a global hub for commodity trading. It will allow our terminal operators to be at the forefront of technology while at the same time operating at the highest level of security."
Mamdouh Malek Azizeh, commercial director, Fujairah Oil Terminal, said: "Blockchain innovation will allow Fujairah's terminal operators such as us to deliver operations in a more efficient environment. This process will allow Fujairah Oil Terminal to increase operational efficiency and data management security. The technology will allow us to deliver results under a secure and no risk environment, which are seminal to the energy industry."
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