Blockchain In Cargo Shipment Tested By Russian Oil Producer Gazprom Neft

Announcements, Blockchain | February 8, 2018 By:

Russian oil producer Gazprom Neft has announced that it has tested the distributed ledger technology (DLT) in logistics.

Gazprom Neft is the fourth-largest oil producer in Russia and ranked third according to refining throughput. It is a subsidiary of Gazprom, which owns about 96% of its shares. As of December 31, 2016, the company had total proved and probable hydrocarbon reserves of approximately 2.72 billion tons of oil equivalent. It also produces and sells motor fuels, aviation fuels, lubricants, bitumen products, and petrochemical products, as well as provides bunkering services to various industries and sectors.

The company said blockchain technology was applied to the shipment of pipeline valves from Veliky Novgorod to Prirazlomnaya offshore platform in the Pechora Sea. The cargo was fitted with radio-frequency identification (RFID) marks and a GPS-sensor. Blockchain ensured the merging of physical cargo shipment with related document circulation and other accompanying processes, while providing all the parties involved with the access to reliable information in encrypted form.

Gazprom Neft said that the successful implementation of the pilot project confirmed the possibility of using the technology in supply chain management.

Abdulla Karaev, Director of Purchasing and Capital Construction Directorate of PJSC Gazprom Neft, said blockchain in logistics will create an ecosystem for the interaction of all participants in the process, such as producer, inspector, logistics operator, warehouse and consumer. He added that they see the potential for the development and further application of the technology.

Currently, most of the shipping transactions involve a big number of papers, such as sales contracts, charter party agreements, bills of lading, port documents, letters of credit and others related with the vessel and the cargo. Blockchain is expected to reduce a massive amount of paperwork; hence, it will improve work efficiency.