EIL in talks with Saudi Arabia, UAE for oil infra projects to bypass Strait of Hormuz

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The developments come as the conflict involving Iran and the U.S. has disrupted shipping through the Strait of Hormuz. File. | Photo Credit: AP

State-run Engineers India Ltd (EIL) is in early-stage discussions with Saudi Arabia and the UAE to provide consultancy and engineering services for oil and gas infrastructure aimed at reducing the Gulf producers' dependence on the Strait of Hormuz, which has been severely disrupted by the Iran conflict, its chairman said.

Saudi Arabia and the UAE are planning investments of about $1 billion in pipelines, storage facilities, oil terminals and related infrastructure to provide alternative routes for moving crude and petroleum products to international markets, EIL chairman and managing director Atul Gupta told reporters after the company's annual general meeting.

"They are at the planning stage and we are involved in discussions at the planning stage," Mr. Gupta said.

EIL is seeking project consultancy and feasibility-study mandates for the planned infrastructure, he said.

The developments come as the conflict involving Iran and the U.S. has disrupted shipping through the Strait of Hormuz, one of the world's most important energy chokepoints. The disruption has prompted Gulf producers to look at alternative infrastructure and routes to reduce their exposure to any prolonged interruption.

"There has been a slowdown in order inflows from the region (in the aftermath of the conflict) but we hope to see the order inflow pick up in Q3 and Q4," he said. "Definitely, the conflict has opened more opportunities for us." The immediate impact of the conflict, however, has been a slowdown in new orders from the Middle East as energy producers focus on securing and restoring existing installations, Mr. Gupta said.

"There has been a slowdown in orders from the Gulf region as those countries are busy securing and restoring their installations," he said.

The slowdown is significant for EIL because international business has become an increasingly important source of growth. Overseas projects account for 43% of its order book, while international consultancy contributed about ₹4,929 crore, or nearly 62%, of the fresh business secured during 2025-26.

EIL secured fresh business worth ₹7,978 crore in the year ended March 2026, taking its order book to a record ₹15,109 crore as of March 31, he said adding the order book stands at around ₹17,000 crore currently.

The company secured ₹510 crore of orders from the Gulf region since the Iran war started, he said.

EIL has significant exposure to West Asia, with projects and engagements across Saudi Arabia, the United Arab Emirates, Bahrain and Kuwait. It has also opened an office in Saudi Arabia and has a long-term in-Kingdom services agreement with Saudi Aramco.

For EIL, the conflict is therefore creating a mixed picture: delays to existing projects and near-term order inflows, but potentially a larger pipeline of engineering work if Gulf producers accelerate investments in alternative export infrastructure.