The collaboration among Oman Oil, Orpic Group and HSBC Bank Oman SAOG have led to the first successful trade finance transaction, using the R3-developed blockchain tech.
Reported by the Oman Observer on November 23rd, Oman Oil and Orpic Group – 2 of the Oman-based heavyweights in the gas and oil industry – with the cooperation from the HSBC Bank, successfully finalized the first trade finance transaction, powered by R3 blockchain, in the nation: a polypropylene trade to Abu Dhabi National Carpet Factory.
HSBC Oman has played their part in the deal with advising a blockchain-based digitised letter of credit, and Oman Oil and Orpic Group to be the beneficiary of it.
The new blockchain-powered solution will enable transaction finalization in only a day, a significant improve to the old 5 to 10 days.
Nizar al Lawati – Oman Oil and Orpic Group CTO – shared that the firm prides itself in becoming the pioneering establishment to further the development of the digitization of trade finance through blockchain.
“This Blockchain pilot is an important station in our journey towards digitisation, a journey that started with Artificial Intelligence (RPA++) and continues to embrace new disruptive technologies.” Sadiq al Lawati, finance and strategy commercial value partner at Oman Oil and Orpic Group, shared his remarks.