Stena Drilling teams up with Cambridge-based blockchain technology start-up

Stena Drilling has acquired a minority stake in and formed a 3-year technology partnership with SmartChainServices (SCS), a Cambridge-based (UK) blockchain technology start-up.

Stena Drilling teams up with Cambridge-based blockchain technology start-up
Photo: Stena Drilling

The announcement follows a six-month proof of value project, where Stena Drilling applied the power of SCS’ ClearDapp™, a blockchain and smart contract technology, to reduce and eventually eliminate complex transactions related to IADC reporting and payment-for-rig-performance.

Now, the companies will work together to further develop smart contract solutions for the energy sector. With aims to automate and execute the payment cycle, the technology partnership will offer the energy industry new contractual models based on milestones such as drilling speed, carbon intensity or fuel usage – all automatically validated through data.

Colin Dawson, Digital Business Transformation Manager of Stena Drilling said:

“We’re delighted to enter a technology partnership with SCS. Over the past six months, it has become clear that blockchain smart contract technology has the potential to transform how the energy sector does business.”

“We have a unique vantage point for this technology development as we continue to advance our own digital transformation. The sector faces tighter scrutiny around ESG from investors and society as the energy transition takes hold, and smart contract solutions offer a transparent way to demonstrate impact via tracking Scope 1 emissions at the rig, for example. We’re proud to play our part in progressing the sector.”

John Hanson, CEO of SCS said:

“Stena Drilling is the perfect partner for us, given its world class fleet and forward-thinking approach to digitalisation. There’s a huge opportunity for those in the sector that adopt blockchain technology to reduce admin burden, track transparency and reduce cost. Together, over the next twelve months, we will work very closely with the Stena Drilling team to fundamentally change business models in the energy sector, particularly those based on drilling performance.”

The companies are scheduled to trial the ClearDapp solution with live data in Q4 2021, in collaboration with a major oilfield operator. ClearDapp is built on R3’s Corda platform, and in Q1 2022, SCS will deliver peer-to-peer transactions via the beta version of Corda’s ‘payment’ module/SDK.