Major Oil Firms Partnering with Banks to Launch Platform for Commodities Trading

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Total News – Atlanta, GA 11/14/2018. Oil industry giants BP, Shell and Equinor are among the companies partnering to launch a blockchain platform to modernize physical energy post-trade processes.

According to a report by S&P Global, the platform will be launched by the end of 2018. It aims to help companies move away from paper-based trading contracts and operations documentation to digital smart contracts.

Vakt, as the platform consortium will be called, is being developed in partnership with the major banks ABN AMRO, ING, and Societe Generale.

"We expect to go live at the end of November in the North Sea oil market. In 2019 we will look at ARA (Amsterdam-Rotterdam-Antwerp) barges, waterborne markets and US crude pipelines. And by January we expect the first licensees will come on board, in addition to our shareholders," said Vakt product development vice president Lyon Hardgrave.

Once the platform is operational, it is possible to save in post-trade resolution of about 40% with data errors eliminated and processes accelerated, thus freeing up time and capital.

Hargrave added:

"This not a trading platform, nor a settlement platform - there is no crypto currency involved. But it is everything in between: deal recap; confirmation; contract; logistics (the really big element in all this) -- and invoicing."

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