FILE PHOTO: The Saudi Aramco logo is pictured at an exhibition in Paris, France, February 1, 2024. REUTERS/Benoit Tessier/File Photo
TOKYO (Reuters) - Japanese startup Terra Drone, which uses drones to survey and inspect energy infrastructure, is stepping up cooperation with Saudi Arabia's state-owned oil company Aramco to inspect oil and gas facilities, Terra Drone told Reuters.
The Japanese company has signed a memorandum of understanding with Aramco under which Terra Drone will hold test runs to inspect the oil giant's facilities in Saudi Arabia starting later this year and into next.
Actual operation of the inspections is expected to begin in 2027, Terra Drone said. If Terra Drone wins the final contract from Aramco, it would be the company's largest ever for drone inspections of oil and gas facilities.
"We're aiming for billions of yen in sales over the medium to long term, three to five years," Terra Drone CEO and founder Toru Tokushige told Reuters.
Terra Drone set up a subsidiary in Saudi Arabia in 2023 when it raised $14 million from Wa'ed Ventures, the venture capital arm of Aramco.
Terra Drone has been conducting inspections and surveying in the Middle East, but not for Aramco.
Aramco currently sets up scaffolding over two to three weeks for employees to visually inspect storage tanks and other facilities.
Besides infrastructure inspections, Terra Drone is developing traffic management systems for unmanned aircraft and offers drones for applying fertiliser and pesticides to crops.
The company was listed on the Tokyo Stock Exchange Growth Market 250 Index in November 2024. It has yet to turn profitable.
(Reporting by Maki Shiraki. Writing by Daniel Leussink. Editing by Mark Potter)
