OQ, known as Orpic Group a Oman rooted energy company has announced that it has successfully completed the second financial transaction leveraging R3 Corda blockchain technology platform. This is the second blockchain transaction of OQ and it was processed during the 4th financial quarter of 2020, enabling a shipment of OQ’s polypropylene from Oman to Bangkok, Thailand.
The first transaction was made in November of 2019. This time the transaction as per the OQ entailed more complexity with sea freight and required collaboration among various parties. This included two financial banks from Asia. As per OQ announcement, the blockchain technology significantly expedites the trading process, allowing transactions to be processed faster, easier and in a more secure manner.
The blockchain Letter of Credit (L/C) mirrors the traditional process with all participants using a single digital platform to complete the transaction, allowing end-to-end traceability to the L/C cycle, which can be accessed 24/7. “This transaction is another validation of OQ’s commitment to digitalisation and leveraging state-of-the-art technologies which transform the way we do business and maximise value to our customers and other stakeholders’’, states Sadiq al Lawati, Finance & Strategy Commercial Value Partner at OQ.
“Through using such automated and paperless platforms, we improved efficiency and reduced discrepancies. It helped us accelerate product movement and thereby optimised the use of our working capital. We look forward to the time when the banks start to provide more blockchain commercial offerings, which should take this journey to its next level’’, continued Sadiq.
Polypropylene remains as one of the fastest-growing polymers, widely used in many different areas such as rigid and flexible packaging, healthcare, food, hygiene, and automotive applications.
“This is another evidence of how OQ continuously seeks efficiency improvement opportunities to be an agile partner and to find solutions beyond the products’’, said Gilles Rochas, Vice President Performance Chemicals at OQ.
“As we continue to deliver better customer experience to our global clients, including those in the North East and South East Asia, I look forward to introducing this transaction method to a broader group of customers’’, affirmed Gilles Rochas.