ADES Group Subsidiary’s Jack-Up Barge Sinks in Gulf of Suez

ADES Holding Company, part of Saudi Arabia-headquartered ADES Group, has disclosed a towing incident in Egypt’s Gulf of Suez, involving a jack-up barge unit owned by its subsidiary and operating within a key oil zone in the Egyptian territorial waters. The sinking of this unit took place in Jabal Al Zeit area at the entrance of the Gulf of Suez, 130 nautical miles from the southern entrance of the Suez Canal in the Red Sea.

While the Admarine 12 jack-up barge was being towed to a new location, the drilling player revealed that a towing incident occurred on the evening of Tuesday, July 1, 2025, resulting in its capsize with 30 personnel on board, including 18 members of the firm’s workforce.

Underlining its commitment to offering comprehensive support to the families of those impacted by this tragic event, ADES emphasized: “The company is working closely with local authorities and emergency services, with the safety and well-being of all personnel remaining its highest priority. A full and thorough investigation into the incident will be conducted.

“The affected barge and personnel are comprehensively insured under the group’s existing insurance program. At this stage, the company does not expect any material impact on its financial position or published guidance for the fiscal year 2025.”

Since the incident, 23 workers have been safely rescued, three remain missing, subject to intensive ongoing search operations by the relevant authorities, but four have unfortunately lost their lives. This includes three fatalities among ADES personnel and one fatality among personnel contracted by third parties.

“The company remains firmly committed to maintaining the highest safety standards across all its operations. We extend our deepest condolences and sincere support to the families and colleagues of those affected by this tragic incident,” highlighted the firm.

Egypt’s Ministry of Petroleum and Minerals also confirmed it was notified about the barge incident in the Gulf of Suez by Offshore Shukheir Oil Company (Osoco). Karim Badawi, the country’s Minister of Petroleum and Mineral Resources, is monitoring the developments of the situation and taking the necessary actions in coordination with the specialized authorities and affiliates in the region.

Badawi, accompanied by Mohammed Jibran, Minister of Labor, and Major General Amr Hanafi, Governor of the Red Sea, visited the survivors of the overturned barge in the area of Mount Zeit in the Gulf of Suez, who are receiving treatment and care at Al-Gouna Hospital, to check on their safety, health, and continue providing them with the necessary care.

The Ministry of Petroleum claims that it made an emergency plan as soon as the incident occurred, where the rescue teams in the Gulf of Suez were mobilized, harnessing all the naval and air capabilities of ships, rescue equipment and aircraft to rescue the barge crew and coordinate with the state authorities so that survivors could be rescued quickly.

While initial indications from sources that wanted to remain anonymous point to a technical malfunction as the cause of the towing incident, which prompted a loss of balance and flooding, the official reason behind the barge incident has not yet been confirmed. As a precautionary measure, booms are being deployed around the site to contain a potential oil spill.

Admiral Ossama Rabiee, Chairman and Managing Director of the Suez Canal Authority, underlined: “Navigation in the Canal is proceeding normally and has not been affected by the sinking of the Admarine 12 drilling rig in the Red Sea.”

Rabiee notes that the Authority’s Crisis Management Center is closely monitoring the situation as part of its role in coordinating with external agencies in managing crises occurring outside the canal’s waterway.

ADES recently secured multiple rig assignments, including a drilling job in West Africa, following a long-term contract extension in Qatar with North Oil Company (NOC), and two contract renewals in Saudi Arabia for rigs that Aramco suspended in 2024.