SRJ Technologies has started delivering services under two major Middle East contracts, marking the transition from agreements to revenue-generating operations with AD Ports Group’s Divetech and Dubai Petroleum.
- First purchase order received under Divetech SLA
- Initial operational call-off triggered with Dubai Petroleum
- Mobilisation underway for robotic inspection and emissions detection
- Contracts represent initial conversion of US$5.7 million pipeline
- Improving Middle East conditions support contract execution
Operational Delivery Commences on Key Middle East Contracts
SRJ Technologies (ASX:SRJ) has crossed a critical milestone by commencing revenue-generating work under two recently awarded contracts in the Middle East. Its subsidiary Air Control Entech Survey (ACE) received the first purchase order under a multi-year Service Level Agreement (SLA) with Divetech Marine Engineering Services, part of AD Ports Group. This initial order covers robotic inspection activities on a vessel within AD Ports' maritime network, marking the start of operational activity under the agreement.
Simultaneously, SRJ has been notified of its first operational call-off under a three-year emissions inspection contract with Dubai Petroleum. The initial scope involves robotic detection of fugitive emissions onshore, with mobilisation now underway. Both contracts represent the first tangible conversions of a combined indicative opportunity pipeline valued at up to US$5.7 million, although no minimum volume guarantees apply.
Strategic Significance of Middle East Partnerships
These contracts embed SRJ within two of the UAE’s most strategically important infrastructure and energy operators. AD Ports Group is a regional maritime infrastructure powerhouse, operating an extensive network of ports, terminals, and logistics facilities. Divetech, as its designated delivery platform for robotic inspection services, offers SRJ access to a substantial asset base where its technology can enhance safety and reduce downtime.
Dubai Petroleum, a leading operator of Dubai's offshore oil and gas assets, manages a complex portfolio requiring ongoing inspection and maintenance. SRJ’s advanced robotic and emissions inspection technologies align closely with Dubai Petroleum’s operational needs, offering potential improvements in asset integrity and maintenance optimisation.
Market Conditions and Outlook for Contract Execution
The initiation of work under these agreements coincides with improving operating conditions in the Middle East, following a period of geopolitical uncertainty. This easing has supported the recommencement of inspection and maintenance programs, enabling SRJ to mobilise resources and begin field delivery.
CEO Kurt Reeves highlighted that while these initial mobilisation activities represent early stages of larger contractual opportunities, they validate SRJ’s delivery model and build confidence that the broader pipeline is beginning to translate into operational execution. The contracts operate on a call-off basis, so future revenue depends on ongoing client demand and operational scheduling.
Contract Background and Pipeline Potential
The SLA with Divetech was announced in April 2026, offering access to an indicative pipeline valued at US$1.3 million. The Dubai Petroleum contract, also announced in April, spans three years with an indicative pipeline of US$4.4 million. Together, they form part of SRJ’s broader strategy to secure long-term platforms that convert framework agreements into recurring operational activity.
Mobilisation under these contracts not only initiates revenue recognition but also serves as a practical demonstration of SRJ’s capability to deliver advanced robotic inspection and emissions monitoring services in challenging environments.
Bottom Line?
SRJ’s initial operational activity under these Middle East contracts confirms its strategic foothold, but revenue growth will hinge on sustained client call-offs amid evolving regional dynamics.
Questions in the middle?
- How will SRJ scale operations if the full US$5.7 million pipeline materialises?
- What impact might future geopolitical shifts in the Middle East have on contract volumes?
- Can SRJ leverage these contracts to secure further long-term agreements in the region?