GuildOne, a Canadian-based blockchain firm that focuses on providing advanced data solutions and emerging technologies to oil and gas companies, is teaming up with enterprise blockchain software provider R3 to develop oil and gas blockchain solutions for the petroleum industry.
The partnership aims to transform the oil and gas sector by offering two enterprise blockchain solutions: Royalty Ledger and the upcoming Hydrocarbon Ledger.
Oil and Gas blockchain for Real-Time Contract Settlements
GuildOne’s Energy Block Exchange (EBX) is an oil and gas blockchain network built on R3’s Corda blockchain platform using Amazon Web Service (AWS). It is designed to enable energy companies to securely share smart contracts, settle payments, and ensure rights and revenue completion. Working with stakeholders like NAL Resources Management Limited, PrairieSky Royalty and ATB Financial, GuildOne successfully executed a proof-of-concept (PoC) oil royalty contract payment using its Royalty Ledger application built on EBX.
By assigning a smart contract to an oil consignment, GuildOne was able to demonstrate blockchain’s ability to help identify the ownership of oil and gas production rights and verify that legally contracted royalty payments have been made to concession owners or other parties to whom a royalty is owed. Placing agreements like this on the blockchain would enable real-time settlement of contracts and help to reduce legal disputes between parties.
Hydrocarbon Measurement Ledger
GuildOne’s other project is a Hydrocarbon Ledger, which is basically a blockchain application that tracks the measurement data of the entire hydrocarbon value chain. It combines Internet of Things (IoT) and distributed ledger technology to track the flow of hydrocarbon volumes through the production system from upstream production to downstream distribution. This helps to eliminate costly delays caused by disputes over data and reduce transaction times and costs as well ensure compliance with the regulators.
GuildOne says it chose to offer its solutions on AWS because of its ability to meet stringent security needs as well as to quickly create nodes on a blockchain network, allowing organizations to start trading almost immediately. R3’s Corda platform, on the other hand, meets the strict standards required for highly regulated industries such as banking and finance.
James Graham, President, and CEO of GuildOne commented:
“Blockchain is not about individuals; it’s a team sport. Our relationship with R3 has been invaluable to integrating convergent technologies to reduce costs and increase revenues for energy sector players”
With its native technological benefits, blockchain technology is set to transform the oil and gas sector — from reducing risks of fraud to facilitating energy trading and making financial transactions more efficient. Indeed, both upstream and downstream are poised to benefit in many ways, including improved equipment maintenance, better management of acreage records and creating more efficient and transparent downstream activities.