G4S secures $187m Basrah Gas contract
G4S Risk Management, the British security business, has won a contract worth $187 million to provide security services to Basrah Gas Company.
G4S will provide 500 personnel and 220 armoured vehicles to safeguard staff working on Basrah Gas Company facilities in Southern Iraq including two gas plants, a liquefied natural gas storage facility, shipping terminal and pipelines between them.
BGC is a high profile target with energy giant Shell holding a major stake in the project. Iraq has the 13th largest proven gas results in the world but war and sanctions mean the country lacks the infrastructure needed to collect, treat and store it.
As a result about 70pc of the 1bn cubic feet of gas produced each day is wasted by being burnt off in polluting flares, according to Shell. If this was collected, it could provide enough energy to power 3m homes or generate $3.5bn in annual revenues.
As military forces are withdrawn from the region, the private sector is expanding in the market. G4S’s contract is worth an initial $187m (£121m) over three years. But this could rise to $270m if it wins a two-year extension and is the largest mobile security contract in the Iraq since the departure of the US-led coalition.
G4S also has also secured a deal worth up to £100m to provide bodyguards to British diplomats working in Afghanistan.
Security staff will provide close protection for up to five years to Foreign and Commonwealth Office staff travelling within the country, as well as guarding the UK embassy in Kabul.
Ashley Almanza, G4S chief executive, said he was “delighted” that tasks traditionally carried out by government forces had been “entrusted by the FCO and BGC” to the private sector.
“These major contract wins reflect G4S’s world class expertise and investment in sophisticated security services,” he added.
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Although G4S is best known to the public for failing to provide sufficient security staff for the London Olympics and being caught up in the scandal for overcharging the government to electronically “tag” prisoners, the contracts reflect G4S’s global reach.
Last year the UK and Ireland made up less than a quarter of G4S’s £6.85bn annual revenues, with Asia and Middle East accounting for only slightly less.
Source: The Telegraph