PermianChain Technologies has launched the prototype of its platform for trading potential oil and gas reserves that have yet to be developed. The blockchain-based approach will make it easier to put a value on reserves before they have been produced, enhancing efficiency and improving understanding of a project’s viability.
PermianChain has been designed to augment the way that firms across the oil and gas sector interact and trade. The platform takes a blockchain-based approach using the PermianToken (XPR) to put a value on potential oil and gas reserves and a market where these tokens can be traded securely and transparently. By digitizing oil reserves, it becomes far easier to get a comprehensive understanding of a project’s viability and current status. The approach will also dramatically reduce the administrative costs involved in a trade, creating savings that could potentially change the status of marginal fields. There are 1.6 trillion bbl of proven oil reserves globally. Even a small improvement in efficiency could have a significant impact on the industry’s profitability.
The Permian platform is built around five integrated pillars that have been tailored to support different aspects of oil well developments, investment and trading processes.
“The crypto asset-class has inevitably become an integrated part of the global financial markets, and the blockchain economy is becoming more and more important. At the same time, the oil and gas industry has reached a critical point where it needs to find new efficiencies and ways of assigning value,” Mohamed El-Masri, Co-Founder of PermianChain Technologies, said. “The introduction of new sources of energy from shale gas, tight oil or coal seam gas creates an opportunity to examine how we trade before the current inefficiencies become entrenched. PermianChain will help generate early revenues for suppliers, provide higher discounts to buyers and increase value across the industry, complementing rather than disrupting the way that businesses currently operate.”
The Permian platform is being developed on IBM’s Hyperledger Fabric by PermianChain Technologies, creating a reliable framework for making direct equity investments in private oil campaigns. The platform is committed to compliance and security with a range of integrated know-your-customer and anti-money laundering features from leading third-party providers.
PermianChain Technologies is working closely with King & Spalding, a global legal specialist, to license the PERMIAN platform and have PERMIAN Token (XPR) issued as a regulated crypto asset-class.