Oklahoma Firm Signs Oil Rig Contract With Tanzania

Thursday, July 19th 2007, 12:03 pm

By: News On 6

OKLAHOMA CITY (AP) _ An Oklahoma oil services company signed a $313 million contract Thursday to deliver 10 drilling rigs and service equipment to Tanzania in what officials said is an important step in achieving energy independence for the East African nation.

The deal between Oklahoma City-based Helvey International and Petronet International, a fuel pipeline and storage company based in South Africa, is the first major drilling initiative in Tanzania and strengthens Oklahoma's presence in the international oil and gas industry, officials said.

``This is the first of many international rig purchase contracts we're working on,'' said Michael Helvey, president and CEO of Helvey International. Helvey said his company is working on other projects elsewhere in Africa as well as in the Middle East, South America and the Caribbean.

State Rep. Shane Jett, R-Tecumseh, said Oklahoma companies that develop relationships with international partners provide opportunities for Oklahoma residents who might otherwise look for work in other states.

``Success for an Oklahoma company means jobs,'' Jett said during a contract-signing ceremony with company and Tanzanian officials at the state Capitol.

Tanzania, which has some commercial natural gas production, is a nation of 38 million people that is experiencing increasing energy needs, officials said. Negotiations between Helvey and Petronet were supported by the Tanzania Petroleum Development Corporation, an arm of the Tanzanian government.

``The bottom line is energy independence in the Republic of Tanzania,'' said Nassir Yusuph, managing director of Petronet in Tanzania.

``Through this project, Tanzania will create revenue-generating products and services for export, employment opportunities and wealth the country can use for infrastructure building,'' Helvey said. ``We become a partner in helping a deserving country achieve energy independence.''