A blockchain company is partnering with the OOC Oil & Gas Blockchain Consortium to “successfully test the industry’s first blockchain application for Authorization for Expenditure (AFE) balloting.”
Authorization for Expenditure are utilized within the oil and gas industry for funding projects, among other things, and would be converted over to the decentralized technology thanks to the partnership with a company called GuildOne. “Blockchain seeks to streamline the approval process reducing cycle time and errors, as well as provide immutable documentation of the final working interests,” reads a press release on the matter.
Thanks to automated smart contracts, companies within the industry can send their proposals, payments, and hold elections on networks without any third-party intervention. The network has been tested already using nodes on a network, and the final versions of said tests went well.
Speaking on the matter is Rebecca Hofmann, a chairman of the Consortium:
“Successfully proving the application of blockchain in the AFE balloting process with all ten operator member companies demonstrates the power of this technology and its ability to transform fundamental oil and gas business activities.”
Also sharing some thoughts is JD Franke, the vice-chairman of the same group, who stated:
“AFE balloting represents just one of several use cases with common industry pain points being advanced within the consortium. The success of this POC demonstrates how the industry can use blockchain technology to address these pain points, and we expect to leverage learnings from this project to realize key blockchain frameworks and guidelines for the oil and gas industry.”