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EIL in Talks with Saudi Arabia and UAE for Oil Infrastructure Projects

Engineers India Ltd is in discussions with Saudi Arabia and the UAE for oil projects to bypass the Strait of Hormuz. Iran-related conflicts have disrupted shipping, prompting Gulf states to seek new routes, potentially boosting EIL's future prospects.

BRIC Team
By BRIC Team · BRIC.TV
Published Sep 19, 2026 · 3 min read · 2 views
EIL in Talks with Saudi Arabia and UAE for Oil Infrastructure Projects

Key Takeaways

  • EIL in talks with Gulf nations for oil and gas projects
  • Projects aim to reduce reliance on Strait of Hormuz amid conflicts
  • Gulf nations plan $1 billion investment in alternative infrastructure
  • EIL's international business crucial, with 43% of order book overseas

Engineers India Ltd (EIL) is in the early stages of discussions with Saudi Arabia and the United Arab Emirates (UAE) to offer its consultancy and engineering expertise for new oil and gas projects. The goal? To decrease the Gulf producers' dependence on the Strait of Hormuz. That crucial waterway has faced severe disruptions due to ongoing regional conflicts involving Iran.

The Gulf countries are gearing up to pump around $1 billion into building pipelines, storage facilities, oil terminals, and other related infrastructure. EIL Chairman and Managing Director Atul Gupta says this investment would open up new routes for getting crude and petroleum products to international markets. "They are at the planning stage and we are involved in discussions at the planning stage, " Mr. Gupta said after the company's annual general meeting.

With the regional conflict wreaking havoc on shipments through the Strait of Hormuz, a critical chokepoint for energy exports, Gulf producers are motivated to find alternative routes and infrastructure. Gupta is hopeful about future prospects, noting that there has been a slowdown in order inflows from the region but expects them to pick up in Q3 and Q4.

Despite the potential for launching new projects, the immediate impact of the conflict has been a drop in new orders from the Middle East. Right now, energy producers are busy securing and restoring existing setups. Gupta elaborated that there has been a slowdown in orders from the Gulf region as those countries are busy securing and restoring their installations.

International projects have become a cornerstone for EIL, making up 43% of its order book. In the fiscal year 2025-26, international consultancy brought in about ₹4,929 crore, accounting for nearly 62% of new business. EIL's total new business for the year was ₹7,978 crore, pushing its order book to a record ₹15,109 crore as of March 31. At present, the order book is around ₹17,000 crore.

Since the Iran conflict began, EIL has snagged ₹510 crore worth of orders from the Gulf region. The company is well-established in West Asia, with projects in Saudi Arabia, the UAE, Bahrain, and Kuwait. EIL has an office in Saudi Arabia and a long-term services agreement with Saudi Aramco.

For EIL, the conflict presents a mixed bag: delays in existing projects and short-term order inflows, but the potential for a larger engineering pipeline if Gulf countries speed up investments in alternative export infrastructure. Gupta expects opportunities to increase once the conflict subsides, as West Asian energy firms are likely to invest in pipelines, storage terminals, and other facilities to lessen their reliance on the Strait of Hormuz.

The UAE plans to build additional underground oil-storage facilities in Fujairah. These could involve engineering design, feasibility studies, project management, and construction management—areas where EIL has traditionally excelled. The Strait of Hormuz is a key maritime route linking the Persian Gulf with global markets, and any prolonged disruption can affect shipping routes, energy security, and the cost and availability of crude and petroleum products.

Expanding International Presence

The opportunities in West Asia fit neatly with EIL's strategy to broaden its horizons beyond traditional hydrocarbons and build a bigger international footprint. The company has solidified its presence in Saudi Arabia and continues to work in the UAE, Bahrain, Kuwait, Algeria, Guyana, and Mongolia, while also expanding into Africa.

In Nigeria, EIL has secured an EPCM mandate for expanding the Dangote refinery, worth about $360 million, along with a separate assignment for a four-train fertilizer project. EIL is also diversifying into infrastructure, renewables, green hydrogen, biofuels, nuclear energy, and defense to reduce its reliance on traditional hydrocarbons.

How quickly EIL can turn the current geopolitical disruption into new orders will depend on how fast Gulf producers move from planning to actual investment and how quickly the conflict-related slowdown in existing projects eases. For EIL, the Middle East conflict is creating a short-term drag on order flows, even as it potentially opens up a new category of engineering projects aimed at making the region's energy exports less vulnerable to disruptions at Hormuz.

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