The state-owned Saudi Oil Company, Saudi Aramco, purchased the blockchain-based Faket Oil Trading Company, according to Reuters reports on January 28.
The Saudi Aramco Energy subsidiary has purchased $ 5 million in new shares, according to the Faket press release. The investment will be used to develop the platform, focusing on expanding into the Asian market.
In addition to the investment, the Aramco Trading Company oil trading company is supposed to use the FACT platform. The platform currently operates in the markets of North Sea Brent, Fortez, Ospirk, Ekofisk and Troll, with a high market share. Aramco Trading will add its trading volumes to the Blockchain-based platform.
The possibility of simplifying and modernizing the oil trade
The FACT platform focuses on post-trade processing of physical energy transactions. It provides a seamless process from entering into settlement by eliminating paper-based processes and manual accounting practices. "FACT has proven that its program has the ability to digitize what is currently a very manual process," said Hans Middleton, Managing Director of SAEV Europe.
Blockchain guarantees a "single source of truth" for both buyers and sellers, which are stored on the fixed and distributed logbook, according to FACT.
FACT launched its trading platform in December 2018 with initial restrictions on North Sea markets. The company was created in 2017 by a group of industry leaders that included Shell and BP, who were also the first users of the platform.
Since then, the platform has hosted more industry giants such as Chevron, Total and Indian Reliance Industries.
Saudi Aramco - the world's largest oil company by production - previously invested in blockchain companies through its subsidiary. In May 2019, the company participated in a $ 6 million financing round for DataGampo Corp.