SRJ Navigates Regional Risks While Building $6.7M Contract Base in Middle East

Strategic Partnership Expands SRJ’s Middle East Footprint

SRJ Technologies Group Plc (ASX:SRJ) has taken a significant step in expanding its presence across the Gulf Cooperation Council (GCC) and selected African markets by signing a Service Level Agreement (SLA) with Gecko Middle East Petroleum LLC. This UAE-based partner will deploy SRJ’s class-approved robotic inspection services, targeting asset integrity activities across a broad range of industrial assets including rigs, vessels, and storage tanks.

The SLA, effective until the end of 2027, is structured on a call-off basis and carries an indicative value of US$4.8 million (approximately A$6.7 million) over 18 months. While this figure represents the upper potential revenue, actual income will depend on client requests and approvals, reflecting the flexible nature of the agreement.

Technology and Local Presence as Differentiators

SRJ’s competitive advantage in the region stems from its combination of advanced robotics-enabled inspection capabilities, proprietary BoltEx technology, and established relationships with National Oil Companies (NOCs). The company’s in-country presence through its UAE entity, Air Control Entech Survey LLC, allows for faster mobilisation and safer, more cost-efficient operations compared to traditional inspection methods.

Gecko’s operational expertise in rope access and technical services complements SRJ’s technology, creating a streamlined inspection-to-execution workflow. This partnership is expected to enhance operational efficiencies and compliance outcomes for clients across the energy, petrochemical, and maritime sectors.

Robust Pipeline and Contract Negotiations Signal Growth

Beyond the SLA, SRJ is actively negotiating multiple additional contracts in the Middle East, including advanced discussions with two major parties for potentially significant multi-year deals. These negotiations cover asset integrity inspection, maintenance, and repair services for both onshore and offshore facilities operated by NOCs and international players.

This expanding pipeline reflects the strategic groundwork laid over the past year, including relocating headquarters and manufacturing capabilities to the UAE, forming the CAPSA joint venture, and acquiring a NOC-registered entity. These moves are translating into tangible commercial outcomes and a scalable, recurring revenue base.

Operational Resilience Amid Regional Challenges

SRJ confirms all personnel in the Middle East are safe and accounted for despite ongoing regional security and logistical constraints. While some non-critical work has been suspended, the company continues to mobilise resources, advance contract negotiations, and prepare for future work delivery. This measured approach underscores SRJ’s commitment to maintaining operational continuity and safeguarding its workforce.

Looking ahead, SRJ plans to keep shareholders informed as negotiations progress and new contracts are secured, signalling confidence in its technology-led, partnership-driven growth strategy in a strategically vital region.