Introduction
Japanese startup Terra Drone is increasing its collaboration with Saudi Arabia's state-owned oil company Aramco to inspect oil and gas facilities using drones. Terra Drone has signed a memorandum of understanding with Aramco and will begin test runs in Saudi Arabia later this year, with actual inspections expected to start in 2027.
Context
If awarded the final contract, this would be Terra Drone's largest project for drone inspections in the oil and gas sector. The company's CEO, Toru Tokushige, mentioned ambitions for billions of yen in sales over the medium to long term, within three to five years.
Developments
In 2023, Terra Drone established a subsidiary in Saudi Arabia after securing $14 million from Wa'ed Ventures, Aramco's venture capital branch. Previously, while conducting inspections in the Middle East, Terra Drone had not worked with Aramco, which currently uses scaffolding for employee inspections that take two to three weeks.
In addition to infrastructure inspections, Terra Drone is also developing traffic management systems for unmanned aircraft and provides drones for agricultural applications, such as:
- Applying fertilizers
- Applying pesticides
The company was listed on the Tokyo Stock Exchange Growth Market 250 Index in November 2024 but has yet to achieve profitability.
Conclusion
Terra Drone's expansion in Saudi Arabia marks a significant step in enhancing drone technology for the oil and gas industry, signaling a potential shift from traditional inspection methods to innovative, efficient solutions.