Industrial blockchain network provider Data Gumbo has completed automation of production chemical delivery between a Texas-based Oil and Gas operator and a multinational chemical company.

The automation, a pilot project, which utilised IoT and blockchain based smart contracts, captured and leveraged chemical product data along the path of delivery. Benefits included elimination of transactional inefficiencies, decreased costs of doing business such as manual administrative burdens, and real-time lease operating expense (LOE) visibility into cash flow.

The project, which occurred at approximately 200 locations, included the delivery of several chemicals and services in a 30-day period. The pilot showed that a full implementation at scale would provide: 95% fewer ticket touches eliminating human approvals; reduction of service-to-approved-invoice times from an average of 72 days to two; and an overall reduction of disputes and the accelerated ability for same-day dispute resolution.

According to Data Gumbo, its implementation shows that smart contracts backed by an immutable blockchain record can comprehensively and autonomously match invoices using Internet of Things (IoT) and SCADA data, then integrate directly into leading ERP systems.

Data Gumbo provides an industrial, logistics and smart contracts network call GumboNet. This allows users to replace reliance on estimates, manual paper ticket workflows and long invoicing cycles. GumboNet is designed to capture and analyse existing operational field data to aggregate exact information and measurements, supplying continuous visibility into actual spend for real-time LOE and easier financial health management.

“Real-time LOE is an imperative for oil and gas companies,” said Andrew Bruce, Founder and CEO, Data Gumbo. The project’s successful implementation demonstrates that real-time LOE is a realistic business expectation that enables a company to know their financial position at all times using real data.”

Data Gumbo is based in Houston. Its GumboNet interconnected industrial smart contract network provides integrated real-time capabilities that automate and execute smart contracts. GumboNet is designed to reduce contract leakage, free up working capital, and enables real-time cash and financial management.

Data Gumbo also provides GumboNet ESG, an automated sustainability measurement solution that ties a company’s operational data to environmental, social and governance (ESG) standards reporting for industrial supply chains.

The company has received equity funding from Saudi Aramco Energy Ventures, the venture subsidiary of Saudi Aramco; Equinor Ventures, the venture subsidiary of Equinor, Norway’s leading energy operator; and with L37, a hybrid venture capital and private equity company.