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.