According to a Reuters report, Chinese company Sinochem Energy Technology Co Ltd is in talks with Royal Dutch Shell and Macquarie Group to build an energy blockchain platform. Sinochem Energy Technology is a subsidiary of Chinese state oil and chemicals firm Sinochem Group.
Shell and Macquarie earlier in June announced to work on a blockchain platform for crude oil. However, both the companies have not made any official statements yet. According to the report, both the companies entered a memorandum of understanding that allows the possibility of investing in the firm itself.
Sinochem Energy Technology was launched two years ago, and since then it has struggled to earn high revenues. If this collaboration works and the company manages to build the blockchain network successfully, it might change the balance sheet of the company for good.
Reuters cited its source who said that the Energy group had set an internal deadline for the technology firm to bring in strategic investors by the end of this month or next. The technology was created in August 2017 with a capital of 1 billion Yuan.
The digital platform Gateway is valued at 100 million Yuan by the energy company, which equals to more than $14 million. The company aims to use the blockchain technology to reduce trade and settlement inefficiencies, improve transparency, and reduce the risk of fraud.