November 2017: Commodity Traders, Energy Majors and Banks Join Forces to Create a Blockchain-based Digital Platform for the Energy Commodity Trading Industry

Posted on:
November 7, 2017
News

November 2017: Commodity Traders, Energy Majors and Banks Join Forces to Create a Blockchain-based Digital Platform for the Energy Commodity Trading Industry

Tuesday, November 7, 2017

LONDON, GENEVA, AMSTERDAM and STAVANGER, Norway, November 7, 2017 /PRNewswire/ —

In a unique collaboration, several of the world’s largest trading houses, integrated energy companies and banks intend to create and invest in a new venture, which will be managed and operated as an independent entity. The new venture will develop a blockchain-based digital platform intended to modernise and transform post-transaction management of physical energy commodities trading, pending relevant regulatory approvals.

The consortium participants are companies from: energy majors BP, Shell and Statoil; trading houses Gunvor, Koch Supply & Trading, and Mercuria; and banks ABN Amro, ING and Societe Generale.

By combining the expertise of some of the largest players in energy and commodity trading with the trade finance credentials of established banks in this space, the new venture will benefit from its shareholders’ ability to implement projects, as well as their first-hand understanding of the operational and process opportunities that digitalisation presents.

The new venture seeks to create a secure, real-time blockchain-based digital platform to manage physical energy transactions from trade entry to final settlement. The platform will be open to the commodity industry and designed and stress-tested by its investors who constitute a key segment of its user base.  The intent is to move away from traditional and cumbersome paper contracts and operations documentation to secure, smart contracts and authenticated transfers of electronic documents. The platform aims to reduce administrative operational risks and costs of physical energy trading, and improve the reliability and efficiency of back-end trading operations for all supply chain users, while also opening the door to innovative funding and financing solutions.

Over time, the new venture intends to lead the migration of all forms of energy transaction data to the blockchain, improving data quality, further strengthening security and increasing the speed of settlements industry-wide, while reducing the cost for industry participants.

The platform is expected to be operational by the end of 2018.

Home
< Back

VAKT standardizes inspector and terminal data enabling users to generate required insights from structured data

April 29, 2025

In today’s complex post-trade environment, actuals reconciliation often involves unstructured, inconsistent data flows — with inspector and terminal reports arriving in varying formats, through fragmented channels, and requiring manual reconciliation. vActuals by VAKT is designed to change that.

Read more >>

Strategic Expansion in Asia

April 21, 2025

The crude oil and products flow in Asia has seen a significant upsurge in the recent years, the demand is triggered as 60% of the global population resides in this region, with a median age of 33 years’ across 4.83 billion people, this demand is on growth trajectory for the foreseeable future.

Read more >>

TOTSA legally confirms their physical North West European Barges (NWEB) contracts.

February 17, 2025

The client, a leading oil major and global trading company, sought to transition from inefficient, paper-based trade confirmations to a streamlined, digital process. They engaged VAKT to implement a solution that would digitize and standardize their post-trade confirmation procedures, initially focusing on the North West Europe (NWE) barges market.

Read more >>

VAKT Global Ltd. - All rights reserved