PermianChain recognized as the first Shari’a compliant platform for digitizing oil reserves
Dubai: Permian Holding announced today that it has received Sharia Certification from the Shariyah Review Bureau (SRB), the Bahrain-based global Sharia certification and audit services specialist. Permian Holding is set to monetize oil assets via PermianChain Technologies, its blockchain-based start-up and the move to ensure Sharia compliance means that it will be able to broaden its pool of potential investors.
Permian Holding invests in the acquisition of proven oil reserves to generate revenues for suppliers and reduce the administrative costs that can discourage investors from involving themselves in the sector. As part of its ongoing expansion effort, Permian Holding has engaged the Shariyah Review Bureau to ensure that all its developmental activities from tokenization to acquisitions, including the ability to monetize proven reserves, are executed in a Sharia compliant manner.
“We are offering a Platform-as-a-Service (PaaS) that helps solve the working capital requirements of oil exploration and production companies while allowing investors equity benefits from the value of proven reserves,” said Mohamed El Masri, Director of Permian Holding and Co-Founder and CEO at PermianChain Technologies. “Fused with our blockchain technology, our commitment to Sharia compliance will become our competitive advantage and help us meet the needs of Islamic investors. SRB is a globally respected shariah advisor that brings a strong value-added approach to our strategy of offering oil-backed crypto-assets as an alternative investment product for wealth preservation and liquidity potential. We believe our approach will benefit a wide range of investors by offering opportunities beyond traditional asset-classes.”
The blockchain-based crypto-economic tokenization model will be managed with a clear, consistent, transparent and secure investment process. PermianChain’s unique listing process will be available for mainly upstream businesses or public entities with proven reserves and existing oil campaigns. The reserves, once produced, will be sold to midstream companies on the PermianChain’s closed-loopB2B-exchange.
Discussing the changes that PermianChain is seeking to inspire in the energy sector, Yasser S. Dahlawi, CEO of SRB stated, “We are delighted to be working on such a bold sector initiative and will continue to provide an added-value layer of supervision to Permian Holding’s sound governance framework. With only few weeks until PermianChain’s blockchain platform goes live, we look forward to helping ensure that all issued tokens, proven oil reserves, equity crowdfunding, income generation, and related activities are compliant with Sharia principles.”