Fujairah deploys blockchain to track storage of oil data

(MENAFN- Emirates News Agency (WAM))

LONDON, 23rd February, 2018 (WAM) -- Fujairah has engaged S & P Global Platts in a 3-year agreement to distribute the Emirate's weekly inventory data, becoming the first commercial player in the energy sector to implement blockchain Network to improve transparency, efficiency and manage risk in a secure environment.

"Publishing data reduces market opacity and enables traders and investors to see opportunities and risks more clearly, thus enabling them to develop cohesive risk-aware strategies and ultimately lock in greater profits," sheikh Dr. Rashed bin Hamad Al Sharqi, Deputy Chairman of Fujairah Oil Industry Zone (FOIZ) and Chairman of Fujairah Culture and Media Authority, said at the signing of the agreement with the S & P Global Platts President, Martin Fraenkel in London on the sidelines of his participation in the International Petroleum Week.

FOIZ renewed a deal with S & P Global Platts last month to publish its commercial storage capacity data every Wednesday. The Fujairah Data Committee, known as FEDCom, is tasked with the responsibility to collect, verify and distribute inventory data to replicate the data sets that are provided in other trading centres.

"S & P Global Platts partnership is another step forward in the right direction towards transforming Fujairah into a major global hub for the storage and trading of petroleum products," Al Sharqi told the national and international media gathered for the occasion.

After a successful one-year publishing agreement, the FOIZ agreed to extend its partnership with S & P Global Platts over the long-term to ensure the continued visibility to the market provided by regular and publically available data, which is a key ingredient of successful liquid trading centers around the world. The Fujairah Data Committee, known as FEDCom, is tasked with the responsibility to collect, verify and distribute inventory data to replicate the data sets that are provided in other global trading centers such as Singapore and Rotterdam.

Dave Ernsberger, Head of Energy Pricing, S & P Global Platts, said: "We are pleased to have extended our successful partnership with Fujairah by an additional three years to ensure that Fujairah Oil Industry Zone inventory data continues to gain traction amongst global audiences interested in understanding the flows of oil products in the region. The integration of this crucial data into our worldwide distribution capabilities allows us to support Fujairah in the next step in its development towards becoming a global trading hub".

The idea of establishing a benchmark pricing index for the Emirate of Fujairah has been contemplated for many years and is supported by a range of considerations that qualify the Emirate to be a regional pricing center for the petroleum products that are traded in the Gulf. The main advantage of Fujairah is its strategic geographic location outside the Straits of Hormuz, while bridging the time gap between the East and the West.

The agreement was signed in the presence of Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Industry, Tariq Al Mulla, Egyptian Minister of Energy, Saif Humaid Al Falasi, Group CEO, Emirates National Oil Company (ENOC), and a number of heads of state economic departments in Fujairah.

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