Libra field consortium uses blockchain and sees benefits in oil and gas. Photo: Petrobras.
A study by the Pontifical Catholic University of Rio de Janeiro (PUC-Rio) and Petrobras identified 41 global cases of blockchain use in the oil and gas sector, 4 of which in Brazil.
The study concludes that “blockchain projects in the oil and gas sector promote an in-depth reflection of processes among chain participants. That’s because they usually happen in separate ways, while technology allows for integration. “This transcends the benefit of technology by allowing competitors to have confidence and work cooperatively. Therefore, the business culture is profoundly impacted.”
The diversity of companies, use cases and platforms was one of the findings that caught the researchers’ attention. “This is very positive and demonstrates that the industry recognizes and is open to exploring the blockchain potential,” Rafael Nassar, a professor at PUC-Rio who participated in the project, told Blocknews.
The United States (USA) leads the number of cases, with 12 individuals and participation in three consortia with countries like Canada, Germany, Switzerland and Saudi Arabia. Canada is the second largest blockchain user, with 7 individual cases, in addition to the US consortium. In Latin America, there is another case in Chile. Among other countries there are economies such as Russia (2), China (2) and India (1).
The projects in Brazil are by Petrobras with PUC-Rio and Banco do Brasil. One of them, WorkflowBR, is in the record keeper category, subcategory transparency. In this case, it applies to the acquisition of the oil company’s geophysical data processing. The study recalls that a Delloite survey showed that 72% of oil and gas respondents believe that the technology will have a significant impact on the sector.
Two other Petrobras cases, in the same category, are for digital signature. One of them involves Petrobras and Banco do Brasil. Blockchain usage in the so-called SBP is for signing and sharing authorization to transfer or cancel company account management powers at the bank. In both cases Hyperledger Fabric is used.
A third case of digital signature is for an open digital signature application, the AssinadorBR. In this, Ethereum and EOS platforms are used and Petrobras developed it with PUC-Rio.
The fourth project is BallotBR. Ballot is the vote that the members of the Libra Consortium, which explores the Libra field in the pre-salt, do for issues related to the contract. This includes, for example, contracting a product or service. Petrobras is the operator of the consortium, in which Shell, Total and the Chinese companies CNODC and CNOOC also participate. PUC-Rio also participated in the project.
Operating consortia can encourage blockchain in oil and gas
According to Nasser, another important point raised by the study was that the creation of networks or consortia is beginning to materialize. This allows for greater acceleration for the emergence of new initiatives, he said.
“Another very relevant finding is that we have already observed the first cases connecting field data obtained by sensors with rules implemented in smart contracts. Including sensitizing the integrated management system (ERP) to trigger payments in fiat currency. I believe that the gain of confidence in the technology will allow more use cases close to the operation, which can deliver expressive results”, he added.
The survey took place between September 2019 and April 2020. For Nasser, having 10% of cases in oil and gas in Brazil is a good start. Many foreign companies in the sector that operate in Brazil have started to adopt blockchains at their headquarters, he added. “I foresee accelerated growth, as the establishment of the first private networks tends to be a solid basis for launching other initiatives.”
According to the professor, who is also the founder and coordinator of Ecoa at PUC-Rio, a multidisciplinary project of courses, research and innovation programs, the high investments for exploration in deep waters consolidates the trend of operating in a consortium. And that “creates opportunities for technology to deliver efficiency and reduction of bureaucracy to this multi-stakeholder operation.”