CALGARY, Alberta, Sept. 18, 2019 (GLOBE NEWSWIRE) — Calgary-based GuildOne Inc. (GuildOne) has been awarded a contract from the Offshore Operators Committee (OOC) Oil & Gas Blockchain Consortium to deploy and demonstrate a proof-of-concept (PoC) blockchain solution for authorization for expenditure (AFE) balloting. AFE balloting is a commonly used tool for garnering approval and participation in capital projects that are governed by joint operating agreements (JOA).
“Blockchain is a promising instrument for industry collaboration in oil and gas benefiting all connected parties. This proof of concept is a step in the right direction to start the transformation of how we handle the joint operating agreement process for the future,” said Rebecca Hofmann, chairman of the OOC Oil & Gas Blockchain Consortium. “The consortium looks forward to leveraging learnings from this project to inform key blockchain frameworks and guidelines for the oil and gas industry.”
Conventional AFE balloting is conducted manually, which is time-consuming, administratively complex and prone to frequent and costly disputes. Blockchain can significantly streamline this, using smart contracts to automate balloting processes and working interest calculations, and shared, immutable data to reduce disputes.
The OOC Oil & Gas Blockchain Consortium is an oil and gas industry consortium that was founded to advance industry blockchain technology projects for the purpose of driving industry learnings, standards, frameworks and capabilities around blockchain. Current members include Chevron, ConocoPhillips, Equinor, ExxonMobil, Hess, Marathon, Noble Energy, Pioneer Natural Resources, Repsol, and Shell.
GuildOne is a pioneering technology company providing advanced data solutions and business intelligence to oil and gas organizations to enhance their business performance. In 2018, GuildOne conducted the world’s first blockchain oil and gas royalty transaction on Energy Block Exchange (EBX), its energy blockchain business network built on R3’s Corda platform. It has since launched ConTracks, its patent-pending smart contract engine, and developed new use cases, including joint venture interest billing, AFE balloting and road use allowances.
The OOC Blockchain Consortium AFE Balloting project will allow GuildOne to leverage ConTracks to perform a confidential, secure and immutable AFE balloting exchange between multiple member nodes on EBX simultaneously. The project is expected to demonstrate that blockchain can be used to successfully automate the distribution of the AFE ballot, the marshalling of responses by recipient partners within the parameters of the JOA, and the ensuing calculation of working interests in the project.
“We are very excited to be working with the progressive and innovative team at the OOC Blockchain Consortium,” said GuildOne CEO James Graham. “We look forward to proving beyond a doubt that blockchain solutions in oil and gas are ready for primetime.”
“We are proud that Corda is the platform to support GuildOne’s mission in bringing increased transparency and intelligence to the energy sector,” said David E. Rutter, CEO at R3. “The OOC Oil and Gas Blockchain Consortium’s role in shaping these standards is demonstrated through contracts such as this one acquired by GuildOne, enabling smarter, streamlined balloting process that we hope will resonate throughout the entire industry.”
About GuildOne: GuildOne is a pioneering technology company that transforms complex data from diverse systems into valuable information assets to enhance business performance. GuildOne also helps oil and gas companies achieve revenue completeness by identifying, calculating and capturing their full royalty and joint venture interest entitlements. In 2018, GuildOne conducted the world’s first blockchain oil and gas royalty transaction on Energy Block Exchange (EBX), its blockchain business network for energy transactions.
About the OOC Oil & Gas Blockchain Consortium: The OOC Oil & Gas Blockchain Consortium was founded to advance industry blockchain technology learnings for the purpose of defining industry frameworks and solutions enabled by blockchain technology. The consortium was established under the not-for-profit organization Offshore Operators Committee and offers membership-based participation. For more information visit the website at www.oocblockchain.com.
About R3: R3 is an enterprise blockchain software firm working with a global ecosystem of more than 300 participants across multiple industries from both the private and public sectors to develop on Corda, its open-source blockchain platform, and Corda Enterprise, a commercial version of Corda for enterprise usage.
R3’s global team of over 200 professionals in 13 countries is supported by over 2,000 technology, financial, and legal experts drawn from its vibrant ecosystem.
The Corda platform is already being used in industries from financial services to healthcare, shipping, insurance and more. It records, manages and executes institutions’ financial agreements in perfect synchrony with their peers, creating a world of frictionless commerce. Learn more at www.r3.com and www.corda.net.
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OOC Oil & Gas Blockchain Consortium:
OOC Oil & Gas Blockchain Consortium
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Charley Cooper, R3
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