Largest drilling company in Saudi Arabia announces shutdowns

• Ades suspends ‘handful’ of rigs
• Aramco client for all Saudi sites
• Focus on onshore drilling

The largest listed oil and gas drilling company in Saudi Arabia said on Tuesday it had suspended “a handful” of its offshore drilling rigs because of the conflict in the Gulf.

Ades Holding shared the news in a disclosure to the Saudi Exchange. It is the first Saudi drilling company to announce a pause in production since the US-Israeli war with Iran began on February 28.

The company is a major partner of Saudi Aramco, the client for all of its Saudi drilling rigs. 

State oil producer Aramco had confirmed it was drawing down production of heavy crudes to focus on lighter grades that it could more easily ship through Red Sea ports.

Saudi Arabia’s heavy crude production largely comes from offshore drilling platforms, while its lighter blends usually originate onshore.

The announcement of offshore drilling shutdowns came as no surprise, according to Kate Dourian, non-resident fellow at the Arab Gulf States Institute and a fellow at the Energy Institute in London.

“It’s kind of obvious,” she said. “That’s where the shutdowns are.”

On an analyst call earlier this month, Aramco president and chief executive Amin Nasser said drills that had been shut down were capable of running again in just a few days.

Aramco has previously shown its ability to ramp up production after a crisis, Dourian said, but “the longer it shuts down, the harder it becomes”.

Ades did not indicate how many of its 33 drills assigned to the Gulf had been closed, saying only that the suspensions are “temporary”.

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In a statement to the exchange, CEO Mohamed Farouk said the company was still able to remain profitable, despite the suspensions.

“Our extended number of assets, geographic diversification and broader earnings base position us to navigate such developments with discipline,” he said, “while maintaining confidence in our forward outlook.”

The company operates 123 rigs worldwide, including the largest fleet of offshore jackup rigs, which are used primarily in shallower waters. It gave 2026 Ebitda guidance 33-44 percent higher than the previous year.

Earlier this month, international company Borr Drilling also announced suspensions of operations on three offshore Gulf rigs.