S&P Global Platts has deployed a Blockchain network to allow market participants at Fujairah to submit weekly oil inventory storage data.
The full scale commercial deployment of the Blockchain distributed ledger technology allows the 11 terminal operators to submit their data to Fujairah Oil Industry Zone (FOIZ) and the regulator, FEDCom.
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 network improves the manual and unstructured process by which the terminal operators previously communicated their weekly inventory numbers of FEDCom. It also alleviates the need for FEDCom to undertake manual validation and aggregation of each terminal operator's numbers, reducing the scope for human error.
The project will:
- Reduce the burden of manual data management for both FEDCom and the terminal operators
- Dynamic display of reported numbers at an aggregated or individual operator level
- Improve report quality by automatically validating numbers with predefined criteria and aggregating numbers, avoiding human input
- Simplifying the certification of asset ownership
- Improving security of data transmission and storage
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.
Sohail Iqbal, member development committee, FOIZ & Captain Salem Al-Hmoudi, member FEDCom, says: '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, adds: '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. 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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