EIL expects order boost as Saudi Arabia, UAE seek to bypass Strait of Hormuz

Stateowned Engineers Indias EIL Chairman and Managing Director Atul Gupta said the company is in earlystage discussions with Saudi Arabia and the UAE to provide consultancy and engineering services for oil and gas infrastructure as both the countries aim to bypass Strait of Hormuz according to news agency PTIWith the West Asia crisis disrupting the key waterway Strait of Hormuz the two countries are planning to invest USD 1 billion in pipelines storage facilities oil terminals and related infrastructure to provide alternative routes for moving crude and petroleum products to international marketsThey are at the planning stage and we are involved in discussions at the planning stage Gupta told reporters after the companys Annual General Meeting AGM adding that EIL is seeking project consultancy and feasibilitystudy mandates for the planned infrastructureUSIran conflict has impacted ordersThe conflict between US and Iran that started in February this year has had an impact on the new orders from the Middle East but Gupta expects an uptick in the third and last quarter of the financial yearThere has been a slowdown in orders from the Gulf region as those countries are busy securing and restoring their installations he said adding But we hope to see the order inflow pick up in Q3 and Q4 He further said the prolonged conflict has opened more opportunitiesFor EIL the conflict is causing delays to existing projects and nearterm order inflows on one hand but it could potentially translate into a larger order if Gulf producers accelerate investments in infrastructure for alternative export routesOpportunities could accelerate once conflict easesGupta said opportunities could gain further momentum once the conflict eases as Middle Eastern energy companies are expected to invest in pipelines storage terminals and other facilities designed to reduce dependence on the Strait of HormuzIn addition the UAE is also planning additional underground oilstorage facilities at Fujairah he saidCompanys exposure to Middle EastEIL has significant exposure to the Middle East with projects and engagements across Saudi Arabia the United Arab Emirates Bahrain and Kuwait and the company has secured orders worth Rs 510 crore from the Gulf region since the Iran war started Gupta saidFor EIL international projects account for 43 per cent of its order book while international consultancy contributed about Rs 4929 crore or nearly 62 per cent of the fresh business secured during FY26EIL secured fresh business worth Rs 7978 crore in the year ended March 2026 taking its order book to a record Rs 15109 crore as of March 31 he said adding the order book stands at around Rs 17000 crore currentlyDiversification plansMoreover the company is also diversifying into infrastructure renewables green hydrogen biofuels nuclear energy and defence as it seeks to reduce reliance on its traditional hydrocarbon businessInternational expansion is a key strategy and EIL has strengthened its presence in Saudi Arabia and continues to work across the UAE Bahrain Kuwait Algeria Guyana and Mongolia while also expanding its business in Africa Gupta saidWith inputs from PTI