Terra Drone and Aramco Partner for Oil Facility Inspections

Japanese drone startup Terra Drone has signed a memorandum of understanding with Saudi Arabia’s state-owned oil giant Aramco to conduct test inspections of oil and gas facilities. In an announcement Terra Drone explained, that the testing phase will begin later this year and continue into next, with full operational deployment expected in 2027.

Terra Drone CEO Toru Tokushige told Reuters the company is targeting “billions of yen in sales over the medium to long term, three to five years” if it secures the final contract, which would represent Terra Drone’s largest ever drone inspection deal for oil and gas infrastructure.

Technical Implementation

Aramco’s current inspection process requires extensive scaffolding setup over a two to three week period to allow employees to visually inspect storage tanks and other facilities. Terra Drone’s automated inspection platform would significantly reduce this timeframe while improving safety by removing the need for human inspectors to access potentially hazardous environments.

Strategic Partnership

Terra Drone established a Saudi Arabian subsidiary in 2023 after receiving a $14 million investment from Wa’ed Ventures, Aramco’s venture capital arm. While the company has been conducting various inspection and surveying operations throughout the Middle East, this agreement marks its first partnership directly with Aramco.

Market Context

The global drone inspection market continues to expand rapidly in the energy sector, with oil and gas companies increasingly adopting unmanned aerial systems to reduce costs, improve worker safety, and enhance inspection data quality. This partnership represents a significant step in the Middle East’s adoption of advanced drone technology for critical infrastructure maintenance.

Company Outlook

Beyond infrastructure inspections, Terra Drone is developing unmanned aircraft traffic management systems and agricultural drones for fertilizer and pesticide application. The company recently went public on the Tokyo Stock Exchange Growth Market 250 Index in November 2024 but has not yet achieved profitability.

The Aramco partnership could provide Terra Drone with the substantial, long-term revenue stream needed to move toward profitability while establishing the company as a leading provider of drone inspection services for the global energy sector.

Photo courtesy of Terra Drone.