S&P Global Platts uses Blockchain for oil inventory data at Fujairah Oil Industry Zone
S&P Global Platts has deployed a proprietary, secure Blockchain network to allow market participants to submit weekly inventory oil storage data to Fujairah Oil Industry Zone (FOIZ) and the regulator, FEDCom.
FOIZ hosts the Middle East’s largest commercial storage capacity for refined oil products. As exclusive publisher of FOIZ's weekly oil inventory numbers, S&P Global Platts continues to partner with the Emirate in its journey to becoming a global trading hub.
In collaboration with FOIZ, FEDCom and the 11 terminal operators that use the flagship Middle Eastern 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.”
“As part of our on-going commitment to digital transformation in the energy sector and delivering innovative solutions, we are excited about the opportunity to engage with market participants to discuss ways of deploying this technology more broadly to help improve efficiency and manage risk in a secure environment,” he added.
Mamdouh Malek Azizeh, commercial director, Fujairah Oil Terminal FZC, said: “Blockchain innovation will allow Fujairah’s terminal operators such as us to deliver operations in a more efficient and secure environment. We are delighted to take part in this process, which will allow Fujairah Oil Terminal to increase operational efficiency and data management security.”
This project will reduce the burden of manual data management for both FEDCom and the terminal operators and provide dynamic display of reported numbers at an aggregated or individual operator level, according to S&P.
In addition it is expected to improve reporting quality by automatically validating numbers with predefined criteria and aggregating numbers, avoiding human input, and simplify the certification of asset ownership.
As in the current process, FEDCom will have sole access to all individual terminal operator numbers and will submit only the approved aggregated weekly numbers to S&P Global Platts for global distribution.