Sinochem unit to discuss a blockchain platform, Shell, Macquarie, sources

SINGAPORE (Reuters) – Sinochem Energy Technology Co., Ltd, a wholly owned subsidiary of the state’s oil and chemicals company Sinochem Group, is in talks with Royal Dutch Shell and the Macquarie Group, for the construction of an energy-blockchain platform, with three Beijing-based industry sources said.

FILE PHOTO: the logo of Sinochem, is seen outside an office building of Sinochem in Beijing, China, on February 21, 2017. (REUTERS photo/Damir Sagolj/File Photo

Royal Dutch Shell and Macquarie entered a memorandum of understanding in July to explore the construction of a blockchain platform for crude oil, one of the Sinochem unit is an incubator of projects with the potential for growth, said one of the sources, who have direct knowledge of the matter.

Under the MOU, the companies agreed to study the possibility of investing in the company.

Royal Dutch Shell and Macquarie have both declined to comment. Sinochem’s office did not respond to a request for comment.

It is digital platform, that is called a Gateway, will be appreciated by Sinochem Energy and Technology, ” 100 million yuan ($14.10 million), the source said.

As the discussions in order to achieve this, it may enhance the prospects of Sinochem technology unit floundered since its launch two years ago, and with heavy expenses, but little revenue

“Sinochem group has set an internal deadline for the technology company to bring in strategic investors by the end of September or the latest October, as the company is in deep losses,” said the source.

The technology company was set up in August 2017, with a registered capital of 1 billion yuan, in order to support a planned $2 billion partial privatisation of Sinochem’s traditional energy company, shelved last year due to poor market reception.

Sinochem has more than 600 million yuan, in Sinochem’s Energy Technology, which has cut its staff by half from the peak of 1,000 workers, said the first source, and a separate, industry officials with knowledge of the matter.

The Gateway to use the blockchain, is the computer and cryptological technology behind the the cryptocurrency Bitcoin, is to reduce the trading and settlement inefficiencies, improve transparency, and reduce the risk of fraud.

Sinochem’s Technology is the emulation of the Vakt, the world’s first live, digital platform for the trading of energy. That is, it was created by a consortium of major oil companies-BP, Shell, Norway, Equinor, and the trading houses Mercuria Energy Group, Koch Supply and Trading and Gunvor.

Separately, at the level of the group, Sinochem, and is also the conclusion of PetroChina Co. and COSCO Shipping, Energy and Transport Co. Ltd., a subsidiary of COSCO Shipping, the investment in the Gateway, the sources said.

Additional reporting by Paulina Duran in Sydney; editing by Christian Schmollinger

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