Engineers India eyes $1 billion opportunity in Gulf to rebuild damaged oil infrastructure

• EIL in talks with UAE/Saudi for oil facilities.
• Projects to bypass Strait of Hormuz.
• EIL expects $1B orders from Gulf in 2-3 years.

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State-run engineering and consultancy company Engineers India is in discussions with the United Arab Emirates (UAE) and Saudi Arabia on plans to build oil facilities, product pipelines, strategic storage projects, oil terminals and marine infrastructure to bypass the Strait of Hormuz, which has been blocked amid the West Asia conflict, Chairman Atul Gupta said on Friday.

The company expects an order pipeline of around $1 billion from the Gulf region over the next two to three years as countries in the region look to restore damaged infrastructure amid the conflict, Gupta said.

“We are already equipped with the engineering skills to cater to those requirements as and when it comes. They (Saudi Arabia and UAE) are planning (on oil infrastructure projects) and we are already involved at the planning stage to assist for such upcoming projects,” Gupta said at the company’s 61st Annual General Meeting press meet.

He highlighted that the UAE is planning to build more underground oil storage facilities at Fujairah.

Gupta said the West Asia conflict has affected the company’s order inflows from the Middle East region but has also opened up new opportunities.

Engineers India’s order book currently stands at Rs 17,000 crore, of which 57 percent pertains to domestic orders and 43 percent to overseas projects. The company expects the order book to expand as the situation in the Middle East improves.

“There has been some slow down in order inflows from certain territories like the gulf region. The slowdown was on account of restoration activities in their own installation,” Gupta said, adding that the company expects accelerated order inflows in the third and fourth quarters if the situation continues to remain normal.

The company has also expanded its international presence in Nigeria, Mongolia, Guyana, the UAE, Bahrain, Algeria and Kuwait.