Canada will use blockchain in the oil and gas sector

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Canada will use blockchain in the oil and gas sector

GuildOne Inc.  , a  Calgary-based distributed accounting technology (DLT )  firm , has been hired by the Offshore Operators Committee ( OOC  ) Consortium  , which is comprised of major industry companies , including Chevron and ExxonMobil, to develop a proof of concept (PoC) based on blockchain for the vote on authorization of expenses (AFE) in the global oil and gas ecosystem. 

Transforming the oil and gas sector with DLT:

In an effort to digitize the authorization to vote expenses (AFE) and make it friction-free and profitable, the Blockchain Consortium of the Offshore Operators Committee (OOC) is ready to adopt distributed accounting technology (DLT).

As indicated in its press  release  , GuildOne has been hired by the OOC to develop a test solution blockchain authorization concept for voting costs (AFE).

For the uninitiated, the AFE is the final step in the planning of oil wells. It is simply a tool used to obtain approval and request participation in capital intensive projects governed by joint operating agreements (JOA).

Reportedly, conventional AFE voting takes place in a manual, slow and cumbersome process that is prone to frequent costly disputes.

However, the team plans to eliminate the problems associated with existing AFE systems and streamline the entire process with blockchain technology and smart contracts.

The PoC will attempt to demonstrate how smart contracts can handle the AFE voting process and work interest calculations and store the information in an immutable distributed ledger that only authorized parties can access.

A win-win scenario:

Commenting on the PoC blockchain, Rebecca Hofmann, president of the Blockchain Consortium of OOC Oil and Gas Blockchain, reiterated that blockchain technology has enormous potential in the oil and gas ecosystem, as it encourages collaboration in a beneficial way for all parts

THIS POC IS A GREAT LEAP IN THE RIGHT DIRECTION TO BEGIN THE TRANSFORMATION OF HOW WE HANDLE THE PROCESS OF THE JOINT OPERATIONAL AGREEMENT FOR THE FUTURE. THE RESULT OF THIS PROJECT WILL BE USED TO FORMULATE KEY BLOCKCHAIN FRAMEWORKS AND GUIDELINES FOR THE OIL AND GAS INDUSTRY.

Established  in February 2019 by a group of leading oil and gas companies, including Chevron, ExxonMobil, Repsol, ConocoPhillips, Equinor, Hess and Pioneer Natural Resources, the main objective of the OOC Blockchain Oil and Gas Consortium is to explore the potential of the revolutionary blockchain technology in the sector and promote its adoption.

Companies with a vision of the future in the energy industry are  increasingly exploring the cases of DLT use.

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