CB&I has been awarded a significant contract by VMOS, S.A., to oversee the engineering, procurement, fabrication, and construction of a 630,000-cubic-metre (4 million barrels) storage facility for the Vaca Muerta crude oil exportation project. The facility, located in Punta Colorada, Rio Negro Province, Argentina, is part of a strategic initiative aimed at increasing the country’s crude oil exports to both regional and international markets.
Strategic Importance of Vaca Muerta
Vaca Muerta, one of the world’s largest unconventional oil and gas reserves, is a key driver of Argentina’s ambitions to boost its energy exports. The associated Vaca Muerta Sur pipeline will span 437 kilometres, transporting crude oil from the Vaca Muerta formation to a coastal export terminal.
The project is being developed by VMOS, a midstream oil company formed by Argentina’s state-owned energy company, YPF, alongside Pan American Energy, Vista Energy, and Pampa Energía as initial shareholders.
CB&I’s Role in Optimising the Project
CB&I played a pivotal role in the project’s optimisation, supporting the facility’s development from the front-end engineering design phase through to EPC competition. By incorporating value engineering, CB&I helped reduce the project’s overall costs and schedule, ensuring timely commencement of crude oil exportation.
Leadership Perspective
“We are excited to be VMOS’s storage solutions partner for this critical export infrastructure project in Argentina,” said CB&I CEO Mark Butts. “CB&I brings industry-leading safety, quality, and project execution professionalism to every client we serve. We look forward to delivering on our commitments to YPF and the VMOS-associated project partners and shareholders.”
Timeline for Completion
Construction activities are slated to begin in the second quarter of 2025, with the project targeted for completion by the fourth quarter of 2026.
This project underscores CB&I’s expertise in delivering large-scale infrastructure solutions while contributing to the development of Argentina’s vital energy sector.
For more information visit www.cbi.com
