Today's organizations are dealing with a turbulent and unpredictable business environment. In these uncertain times, it is critical that managers at all levels have a deep understanding of discretion as part of the decision-making process. This study investigated the relationship between perceived managerial discretion and project success in the upstream oil and gas sectors. A total of 108 project managers participated in this study. We analyzed data using covariance-based structural equation modelling (CB-SEM) to construct a framework that highlights the importance of dynamic managerial capabilities and organizational agility on perceived managerial discretion. The results confirm and emphasize the direct role of perceived managerial discretion on project success. The study notes the essential roles of strategic management literacy in mediating the relationship between perceived managerial discretion and project success in Indonesia and provides insights for middle managers seeking to foster the success of projects by considering strategic management literacy.