Stena, SCS collaborate on drilling business models

Oct. 13, 2021
Stena Drilling has taken a minority stake in SmartChainServices, a Cambridge, UK-based blockchain technology start-up.

Offshore staff

ABERDEEN, UKStena Drilling has taken a minority stake in SmartChainServices (SCS), a Cambridge, UK-based blockchain technology start-up.

This follows a six-month ‘proof of value’ project, in which Stena Drilling deployed SCS’ ClearDapp blockchain and smart contract technology to eventually eliminate complex transactions related to IADC reporting and payment-for-rig-performance.

The two companies will now collaborate to develop further smart contract solutions for the energy sector, offering new contractual models based on the setting of milestones such as drilling speed, carbon intensity or fuel usage – all to be automatically validated through data.

Colin Dawson, digital business transformation manager at Stena Drilling, said: “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.

“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.”

John Hanson, CEO of SCS added: “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 12 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 expect to trial the ClearDapp solution with live data later this year with an unnamed major oilfield operator.