Yesterday it was reported that a new blockchain consortium is to be created by Sinochem and PetroChina, two state-owned Chinese oil firms. The group hopes to raise $15 million to build a blockchain platform for the petroleum trade.
Though there are reportedly other companies involved, from China and internationally, only the above two are named. Interestingly, the two have more in common than both being state-owned.
Sinochem’s previous General Manager, Zhang Wei, moved to work at China National Petroleum in December, which owns PetroChina. Also just yesterday, it was announced that Sinochem appointed a new General Manager, Yang Hua, who was formerly running the China National Offshore Oil Corporation (CNOOC).
The upcoming blockchain platform could be similar to the post trade oil platform VAKT. VAKT counts BP, Shell, and Equinor as long term supporters with Chevron, Total and Reliance joining a month after launch. It aims to streamline post-trade processes with a transparent, immutable blockchain platform.
This year VAKT reached two-thirds of all North Sea crude oil trades processed, which has since increased to over 90%. The new trade consortium will hence have fierce competition.