Blockchain-based Supply Chain Solution for Oil and Gas Distribution
Sector: Tertiary sector · Industry: Freight forwarding and transport · Organisation: Vertrax · Maturity level: Production
Vertrax utilizes a Hyperledger Fabric-based blockchain solution on the IBM Blockchain Platform to provide complete traceability and transparency in oil and gas supply chains from drilling source to end consumer. The solution can reduce costs per delivery by up to 30% and is already in production use for millions of transactions. Through integration of IoT sensors for fluid inventory tracking, comprehensive visibility of all assets in the supply chain is achieved.
Documentation status
- Project status: Production
- Evidence: Evidence medium
- Editorial review: Ufuk Avci, 15 April 2026
Description
The VAKT platform (founded 2017, live November 2018) was the first production blockchain platform for physical energy trading. Shell, BP, Equinor, Total, Koch Supply & Trading, ABN AMRO, ING and Société Générale formed the consortium. VAKT digitises post-trade processes for physical energy deliveries: document exchange, payment processing and delivery confirmation on blockchain instead of paper-based.
The crude oil and fuel trading industry suffered from paper-based, slow post-trade processing: bills of lading, quality certificates and payment instructions were exchanged physically, which could take 3–7 days and involved significant fraud risk. VAKT addressed exactly this: all parties in a physical energy transfer — traders, banks, storage companies — have access to the same transaction status on the same blockchain basis. Documents are stored immutably. Payments run automatically via Smart Contracts upon delivery proof. For fuel transports in the narrower sense, IBM together with Vertrax (formerly FuelTrax) developed a solution that combines GPS tracking of tankers with blockchain documentation: each delivery is anchored on the blockchain with quantity, timestamp, origin and destination. The system prevents fuel theft, adulteration fraud and enables automatic invoicing.
Perspectives
B2B — organisations perspective
Energy companies and fleet operators receive seamless proof of fuel deliveries through blockchain tracking — immutable and instantly auditable. Smart Contracts trigger payments upon delivery confirmation without manual approvals.
B2C — consumers perspective
End consumers benefit from increased transparency and traceability of the oil and gas products they use. Blockchain technology enables them to verify the origin and transport route of their energy products.
Employees perspective
Employees gain access to accurate, up-to-date information on inventories and deliveries through automated blockchain records. Planned integration of artificial intelligence will provide them with enhanced analytical capabilities and improved forecasting tools.
Benefits
General
- Cost savings of up to 30% per delivery through eliminated inefficiencies and improved process optimisation.
- Complete transparency and traceability of all products from the drilling source to the end consumer through immutable blockchain records.
- Scalable processing of millions of transactions with robust cloud infrastructure and proven enterprise blockchain technology.
B2B — organisations
- Significant reduction of supply chain costs and improved operational efficiency through automated tracking and verification processes.
B2C — consumers
- Increased transparency regarding the origin and quality of the energy products used.
Employees
- Access to accurate real-time information on inventory and deliveries without manual data collection and verification.
Challenges
General
- High technical complexity in integrating various supply chain partners and their existing systems into the blockchain platform.
- Need for cooperation of all parties in the supply chain for complete end-to-end transparency.
B2B — organisations
- Significant initial investments for implementing and integrating the blockchain solution into existing corporate systems.
Employees
- Required training and adaptation to new technological workflows and data-driven decision-making processes.
Technology foundation
The solution is based on Hyperledger Fabric, a permissioned blockchain technology running on the IBM Blockchain Platform and supported by AWS cloud infrastructure. This technology is particularly well suited for supply chains as it grants access only to authorised participants while providing an immutable record of all transactions and movements in oil and gas distribution.
Implementation examples
Vertrax Blockchain Supply Chain Platform for Oil and Gas Distribution
Vertrax wanted to address the lack of transparency and high inefficiencies in the traditional oil and gas supply chain. The company recognised the need for a secure, immutable record of all supply chain events to reduce costs and improve operational efficiency.
Vertrax has implemented a production blockchain solution for end-to-end tracking in the oil and gas supply chain. The solution uses Hyperledger Fabric on the IBM Blockchain Platform and can process millions of transactions.
Vertrax developed a comprehensive blockchain-based supply chain solution combining Hyperledger Fabric technology on the IBM Blockchain Platform with AWS cloud infrastructure. The solution integrates sonar-based IoT sensors to monitor liquid inventories and enables complete traceability from the drilling source to the end consumer. The platform is already in production, processing millions of transactions for bulk liquid distribution companies.
Cost savings of up to 30% per delivery and processing capacity for millions of transactions.
The solution eliminates inefficiencies through automated tracking and reduces fraud risks through immutable blockchain records. Companies can now respond faster to demand peaks during extreme weather events and have full visibility of all assets in their supply chain.
Tags
Supply chain, Traceability, Hyperledger, IoT integration, Cost reduction