#Argentina #CB&I #Vaca Muerta #VMOS #Punta Colorada

Introduction

CB&I, a leading player in the design and construction of storage facilities, has recently secured a major contract from VMOS, S.A. This contract focuses on engineering, procurement, fabrication, and construction (EPC) for a substantial crude oil exportation storage facility in Punta Colorada, located in Rio Negro Province, Argentina. With this significant undertaking, CB&I is set to play a vital role in the development of one of the world's largest non-conventional oil and gas reserves.

The Vaca Muerta Project

Vaca Muerta is not just an oil deposit but a strategic element for Argentina's energy sector, aiming to boost crude oil exports to various regional and international markets. The storage facility is designed to hold approximately 630,000 cubic meters (equivalent to about 4 million barrels) of crude oil, which will support the Vaca Muerta Sur pipeline that extends 437 kilometers. This pipeline is crucial as it transports oil from the Vaca Muerta formation to an export terminal on the coast.

The development is spearheaded by VMOS, a special-purpose midstream oil company that collaborates closely with the state-owned YPF, along with partners Pan American Energy, Vista Energy, and Pampa Energía, who are the initial shareholders in this ambitious project.

CBI's Commitment to Excellence

Recognizing the importance of this initiative, CBI has implemented optimized strategies from the front-end engineering design (FEED) phase to the EPC competition phase. These strategies are focused on value engineering to help VMOS lower overall project costs and timelines, supporting a timely start for crude oil exports. Mark Butts, the CEO of CBI, expressed enthusiasm about the collaboration, stating, "We are excited to be VMOS's storage solutions partner for this critical export infrastructure project in Argentina."

Bringing vast experience and a proven track record, CBI aims to ensure safety, uphold quality, and display professionalism throughout the execution of the project. This mission aligns with the ongoing transformations in Argentina's oil and gas sector, which seeks to enhance its global presence through increased export capacities.

Project Timeline and Future Prospects

Construction work on the facility is slated to begin in the second quarter of 2025, with completion anticipated in the fourth quarter of 2026. This timeline positions the project to deliver its first crude oil exports shortly thereafter, marking a significant milestone for Argentina's oil exportation ambitions.

CBI categorizes this contract as significant due to its estimated value between USD $100 million and $250 million, underscoring the financial implications and the potential impact on the local economy and job market.

About CB&I

CB&I has an impressive history spanning over 135 years, with more than 60,000 completed structures. As a world leader in designing storage facilities, the company is strategically positioned to tackle complex energy infrastructure challenges. Owned by Mason Capital Management LLC and a consortium of investors, CBI continues to innovate and expand its services in response to global energy demands.

Conclusion

The collaboration between CB&I and VMOS marks a key development in Argentina's strategy to capitalize on its natural resources more effectively. As the world increasingly shifts focus to sustainable energy practices, this project demonstrates how traditional oil and gas practices are evolving within a framework of modernization and infrastructural investments. The potential benefits for Argentina and regional oil markets are substantial, making this not just a local economic development story, but a notable chapter in the global energy scene.