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Sinochem Group Made the Country’s First Simulated Transaction of Crude Oil Import Based on Blockchain Technology

Date:2017-12-29 Source:Sinochem Group

Recently, Sinochem Group's Internet Group led by SBU of Energy successfully completed the country’s first simulated transaction of blockchain crude oil import business from the Middle East. This is a practical step for the blockchain technology to be applied in China's energy and petrochemical industry.

The data analysis of the effect of this simulated transaction shows that, the two major supports of the application of this technology –the digital bills of lading and the smart contracts, can significantly enhance the execution efficiency of crude oil transactions, optimizing 20% -30% financing costs.

The blockchain technology is characterized by transparency, efficiency, safety and stability. The standardization and platformization of the blockchain technology enabled trade in China's petrochemical industry in the future will help improve the transparency of the transaction business in China's petrochemical industry and enhance the overall risk management level of the industry.