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How Blockchain technology is transforming the oil industry in Brazil?

Blockchain technology has the potential to transform various industries, and the oil and gas industry is no exception. In 2022, an oil drilling company and an oil well cementing company in Brazil implemented a blockchain-based consensus mechanism and a contract life cycle management system to improve operational efficiency and achieve financial gains.

The consensus mechanism, in this case, was a Software-as-a-Service (SAAS) platform that utilized blockchain to streamline the process of certifying corporate transactions. This technology had multiple benefits, including the elimination of fraud and the improved information security of related documentation.

However, the main value of the implementation was the blockchain contract life cycle management system, which transformed the traditional drilling contract into an automated smart contract. This process brought about significant financial and time-efficiency gains for the company, particularly in terms of the automation of the contract measurement process.

Previously, this process was done manually and took up to 45 days to complete. However, with the implementation of the smart contract platform, the calculation and billing times were reduced to just a few minutes, with the click of a button. This significant increase in operational efficiency allowed the company to save in overhead, improving overall productivity.

In addition to the operational gains, the smart contract also identified an overbilling issue in one of the drilling contracts, resulting in a 2% financial gain for the company. Given the large size of oil drilling contracts, this percentage is significant and more than enough to surpass the investment in the H3aven (Blockchain Contract Lifecycle Management) BCLM software and provide a return on investment.

In summary, the implementation of a blockchain-based consensus mechanism and contract life cycle management system has generated operational efficiency and financial gains for an oil drilling company in Brazil. By automating the contract measurement process, the company was able to reduce calculation and billing times from 45 days to just a few minutes, while also identifying and rectifying an overbilling issue, resulting in a 2% financial gain. The use of smart contracts also provided additional benefits such as fraud prevention and improved information security.

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