By Chen Aizhu
SINGAPORE, Sept 5 (Reuters) - Sinochem Energy Technology CoLtd, a subsidiary of state oil and chemicals firm SinochemGroup, is in talks with Royal Dutch Shell and MacquarieGroup to build an energy blockchain platform, threeBeijing-based industry sources said.
Shell and Macquarie entered a memorandum of understanding inJuly to explore building a blockchain platform for crude oil,one of the Sinochem unit's incubator projects with growthpotential, said one of the sources who has direct knowledge ofthe matter.
Under the MOU, companies also agreed to study thepossibility of investing in the firm itself.
Shell and Macquarie both declined to comment. Sinochem'spress office did not respond to a request for comment.
The digital platform, named Gateway, is valued by SinochemEnergy Technology at 100 million yuan ($14.10 million), thesource said.
If discussions come to fruition, it could bolster theprospects of the Sinochem technology unit which has flounderedsince its launch two years ago with heavy spending but littlerevenue
"Sinochem group has set an internal deadline for thetechnology firm to bring in strategic investors by the end ofSeptember, or the latest October, because the firm is in deeploss," said the source.
The technology firm was created in August 2017 with aregistered capital of 1 billion yuan to aid a planned $2 billionpartial privatisation of Sinochem's traditional energy businesswhich was shelved late last year due to poor marketreception.
Sinochem has ploughed in over 600 million yuan into SinochemEnergy Technology, which has cut its staff by half from its peakof 1,000 workers, said the first source and a separate industryofficial with knowledge of the matter.
Gateway will use blockchain, the computer and cryptologicaltechnology behind the cryptocurrency Bitcoin, to reduce tradeand settlement inefficiencies, improve transparency and reducethe risk of fraud.
Sinochem Technology is emulating Vakt, the world's firstactive digital platform for energy trading. That was created bya consortium including oil majors BP, Shell, Norway'sEquinor, and trading houses Mercuria Energy Group, Koch Supplyand Trading and Gunvor.
Separately, at the group level, Sinochem is also engagingPetroChina Co and COSCO Shipping Energy Transportation Co Ltd, aunit of COSCO Shipping, for investing in Gateway, the sourcessaid.($1 = 7.0928 Chinese yuan renminbi)(Additional reporting by Paulina Duran in Sydney; editing byChristian Schmollinger)
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