Chinese oil giant Sinochem's unit plans blockchain platform with Shell, Macquarie

Layer 1s • September 5, 2019, 7:15AM EDT
UPDATED: September 5, 2019, 7:16AM EDT
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Sinochem Energy Technology, a subsidiary of Chinese state-owned oil and gas giant Sinochem Group, is planning to launch a blockchain platform with Shell and Macquarie.

Reuters reported the news on Thursday, citing "three Beijing-based industry sources." Shell and Macquarie reportedly signed a deal in July to explore developing a blockchain platform for crude oil. The two companies could also invest in Sinochem Energy.

The blockchain platform, dubbed Gateway, is valued by Sinochem Energy at 100 million yuan (~$13.99 million), per the report. The firm initially planned to bring in investors by the end of September, or the latest October, because it is in "deep loss."

Gateway platform aims to reduce trade and settlement inefficiencies, improve transparency and reduce the risk of fraud. Sinochem is also said to be in discussions with PetroChina Co and COSCO Shipping Energy Transportation Co Ltd, an affiliate of COSCO Shipping, for investing in its blockchain platform.

Interestingly, Shell already supports another oil blockchain platform in an association with BP, which is built by Vakt Global. The platform facilitates the trade in crude oil between commodity firms.

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Yogita Khatri profile picture Yogita Khatri

Yogita Khatri is a senior reporter at The Block and the author of The Funding newsletter. As our longest-serving editorial member, Yogita has been instrumental in breaking numerous stories, exclusives and scoops. With over 3,000 articles to her name, Yogita is The Block's most-published and most-read author of all time. Before joining The Block, Yogita wrote for CoinDesk and The Economic Times. You can reach her at [email protected] or follow her latest updates on X at @Yogita_Khatri5.

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