In a bold step toward modernizing energy sector operations, Saudi Arabia’s oil giant Aramco has signed a landmark memorandum of understanding (MOU) with Japan-based Terra Drone Corporation. The agreement focuses on advancing drone and artificial intelligence (AI) technologies for the Kingdom’s vital oil and gas industry. The partnership marks a major shift in how industrial inspections and facility management will be handled, potentially setting a new standard for efficiency, safety, and digital transformation across the region.
Signed by Khalid Y. Alqahtani, Aramco’s Senior Vice President of Engineering Services, and Toru Tokushige, Founder and CEO of Terra Drone Corporation, the MOU signifies more than just a collaboration. It is a commitment to innovation, localization, and sustainability.
This partnership will bring the latest in drone and AI technology to Saudi Arabia, targeting a critical sector that contributes heavily to the country’s GDP. The main focus will be to improve inspection methods, automate routine processes, enhance safety, and train the local workforce to be future-ready.
A Strategic Move for Technological Transformation
Saudi Aramco, the world’s largest oil company, has long been a leader in adopting new technologies to maintain its position at the top of the energy industry. This new agreement with Terra Drone adds another layer to Aramco’s long-term strategy of incorporating high-tech solutions that increase productivity and reduce risks.
The use of drones in industrial settings is growing rapidly worldwide. These unmanned aerial systems are increasingly being used for inspections of hard-to-reach areas such as pipelines, storage tanks, offshore platforms, and industrial plants. By using drones instead of manual inspections, companies can reduce downtime, improve safety for workers, and receive high-precision data in real time.
Terra Drone brings extensive experience to the table. The Japan-based company is known globally for its expertise in drone-based solutions, especially in heavy industries such as oil and gas, mining, and infrastructure. With more than 50 branches across over 30 countries, the company has already executed high-profile inspection projects for large energy players.
This agreement gives Terra Drone a strong foothold in Saudi Arabia, while allowing Aramco to localize cutting-edge drone and AI technologies—something the Kingdom is aggressively pushing under its Vision 2030 initiative.
Localization and Economic Diversification at the Core
One of the most important aspects of this MOU is its emphasis on localization. Terra Drone established its Saudi Arabian subsidiary, Terra Drone Arabia, in 2023. This followed a major $14 million investment from Wa’ed Ventures, the venture capital arm of Aramco, which backs innovative technologies with long-term strategic potential.
Terra Drone Arabia will play a central role in localizing drone inspection services, establishing R&D operations, and training Saudi talent in advanced drone and AI applications. The goal is not only to reduce reliance on foreign labor and expertise but also to create high-value tech jobs for Saudis.
This localization effort is in line with the goals of Saudi Arabia’s Vision 2030—a national plan aimed at reducing the Kingdom’s dependence on oil exports by developing a more diverse and knowledge-based economy. Investing in technology sectors like robotics, automation, and AI is seen as essential to achieving these ambitions.
Aramco’s support for this partnership also reflects its commitment to contributing to Vision 2030 by helping build a robust industrial ecosystem powered by local talent and innovation.
Cutting-Edge Tech for Safer and Smarter Inspections
Traditionally, facility inspections in the oil and gas industry have involved labor-intensive and often risky procedures such as building scaffolding, suspending workers at height, and stopping operations for several days or weeks. These methods are not only time-consuming and costly, but also expose workers to potentially dangerous environments.
Through this partnership, Aramco and Terra Drone will begin testing drone-based inspection services for storage tanks and various critical infrastructure components. These tests are expected to start later this year, with full-scale operations planned for 2027.
The benefits of using drones are numerous. Equipped with high-resolution cameras, LiDAR, thermal sensors, and AI-driven data analysis, drones can collect detailed information in a fraction of the time required by traditional methods. AI software can then analyze this data quickly, detecting corrosion, leaks, or structural issues far more accurately than the human eye.
This enables predictive maintenance—allowing operators to fix problems before they become major hazards—and ultimately leads to safer, smarter, and more cost-effective operations.
A Long-Term Vision with Big Returns
If the test runs are successful, this project will become Terra Drone’s largest industrial drone inspection initiative in the world. The company estimates that it could generate substantial revenue over the next three to five years, driven by long-term inspection contracts and growing demand for automation in oil and gas operations.
The potential for growth is enormous. With Saudi Arabia hosting some of the world’s largest oil fields and Aramco managing thousands of assets—from pipelines to refineries—the need for constant inspection and maintenance is vast. Automating even a small portion of these tasks through drones and AI could save millions of dollars and improve overall asset reliability.
Additionally, this project could set the blueprint for future collaborations between Aramco and other technology innovators, not just in the energy sector but also in utilities, construction, transportation, and defense.
Building a Drone-Powered Future
Speaking about the agreement, Toru Tokushige, CEO of Terra Drone, emphasized the importance of local impact: “This MOU reflects our commitment to driving innovation and supporting localization in line with the vision of Aramco. Through our group company Terra Drone Arabia, we aim to introduce cutting-edge drone technologies that not only enhance safety and efficiency but also empower the local workforce.”
The sentiment was echoed by Aramco representatives who noted that such partnerships are essential for ensuring that the Kingdom remains competitive in a rapidly changing energy landscape. By working together, both companies are creating a new model for industrial transformation powered by digital tools and human capital.
Final Thoughts
The partnership between Aramco and Terra Drone is more than a business deal—it’s a forward-looking alliance designed to prepare the Saudi oil and gas industry for the future. By combining global innovation with local execution, the agreement holds the promise of making operations safer, smarter, and more sustainable.
As the world transitions toward smarter industries and digital transformation, Saudi Arabia is positioning itself not just as an oil superpower, but also as a technology leader in energy innovation. Through this partnership, drones and AI won’t just fly over the desert—they’ll help shape the future of energy.
