EIL in Early Talks with Saudi Arabia, UAE on Hormuz-Bypass Oil Infrastructure

State-run Engineers India Ltd (EIL) is in early-stage discussions with Saudi Arabia and the United Arab Emirates to provide consultancy and engineering services for oil and gas infrastructure designed to reduce the Gulf producers' dependence on the Strait of Hormuz, the company's chairman has said.

The two Gulf states are planning investments of about $1 billion in pipelines, storage facilities, oil terminals and related infrastructure to create 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, adding that EIL is seeking project consultancy and feasibility-study mandates for the planned infrastructure.

The talks come as the conflict involving Iran and the United States has disrupted shipping through the Strait of Hormuz, one of the world's most important energy chokepoints. The disruption has pushed Gulf producers to explore alternative infrastructure and routes to limit their exposure to a prolonged interruption.

Mr. Gupta said the immediate impact of the conflict has been a slowdown in new orders from the Middle East, as energy producers focus on securing and restoring existing installations. "There has been a slowdown in order inflows from the region 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 slowdown matters 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. The order book currently stands at around ₹17,000 crore, Mr. Gupta said. The company has secured ₹510 crore of orders from the Gulf region since the Iran war started.

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

Mr. Gupta said opportunities could accelerate once the conflict eases, as West Asian energy companies are expected to invest in pipelines, storage terminals and other facilities aimed at reducing reliance on the Strait of Hormuz. The UAE is also planning additional underground oil-storage facilities at Fujairah, he said.

Such investments could include engineering design, feasibility studies, project management and construction-management assignments — areas in which EIL has traditionally operated.

The Strait of Hormuz is particularly important to Gulf oil exporters because it provides the principal maritime route connecting the Persian Gulf with global markets. Any sustained disruption can affect shipping routes, energy security and the cost and availability of crude and petroleum products.

The West Asia opportunity comes as EIL seeks to expand beyond its traditional hydrocarbons business and build a larger international presence. The company has strengthened its presence in Saudi Arabia and continues to work across the UAE, Bahrain, Kuwait, Algeria, Guyana and Mongolia, while also expanding in Africa, Mr. Gupta said.

In Nigeria, EIL has secured an EPCM mandate for the expansion of the Dangote refinery, valued at about $360 million, in addition to a separate assignment for a four-train fertiliser project.

The company is also diversifying into infrastructure, renewables, green hydrogen, biofuels, nuclear energy and defence as it seeks to reduce dependence on its traditional hydrocarbon business.

How quickly EIL converts the current geopolitical disruption into new orders will depend on the pace at which Gulf producers move from planning to actual investment, and on how soon the conflict-related slowdown in existing projects eases. For now, the Middle East conflict presents a near-term drag on order flows even as it potentially opens a new class of engineering projects — infrastructure meant to make the region's energy exports less vulnerable to disruption at Hormuz.