Blockchain and the Internet-of-things Know-hows Tested in logistics at Gazprom Neft

Experts at Gazprom Neft’s Offshore Projects Development Division together with colleagues from the supply division Gazpromneft-Snabzheniye have tested blockchain* and conception of the Internet of Things** know-hows in logistics of material and technical resources.

Radio-frequency identification tags (RFID) and satellite positioning sensors (GPS) now installed on the isolation valves purchased for Gazpromneft Shelf. At the stage of shipment from the production facility in Veliky Novgorod a document, containing all the information about the delivery was formed after reading the RFID tags. GPS sensor allowed to control the movement of consignment to the storing facility in Murmansk, the speed of its transfer as well as the number and stops duration along the way. All the received data from devices was fixed by the smart contract*** and reflected in the blockchain. Further information regarding warehouse and transport operations — the consignment was delivered to the warehouse, moved to the loading pier, delivery to the Prirazlomnaya platform in the Pechora Sea — was transferred accordingly. Blockchain provided an inextricable connection of the physical delivery, all related processes and documents flow, as well as allowed all participants of the operation to access reliable information in encrypted form.

The pilot project successful implementation confirmed the possibility of using the blockchain technology in supply chain management. Gazprom Neft is considering the prospects for further blockchain potential usage and replication of the gained experience.

“Blockchain in supply chain and logistics will allow creating an interactive ecosystem for all participants of the process, such as producer, inspector, logistics operator, warehouse and consumer. We see the potential in technology further development and application,” commented Abdullah Karayev, Head of Procurement and Capital Construction, Gazprom Neft.


Reference

*The blockchain is a distributed decentralized database used for information storage and transmission. All transactions fixed in the blockchain cannot be deleted or modified.

**The Internet of Things is a combination of objects connected to the Internet, interacting both with the users and each other. The concept allows integrating consignments into the information field with the help of various devices.

***Smart contract — an algorithm that runs remotely in the blockchain network in case the specified conditions are met. The result of running a smart-contract is confirmed by all network participants. Consequently, logistics operations history is collected in the global space. All parties involved in the logistics of material and technical resources process have access to encrypted information. Within the framework of smart contracts, both contractors and exchange data devices can interact.

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