G4S said it was looking at oil and gas based prospects in countries like Guinea-Bissau, Nigeria and South Sudan, where a huge oil pipeline could be built through Kenya to a port there in order to bypass bitter disputes with neighbouring Sudan.
High potential mining opportunities are also in countries such as Botswana, Ghana, Namibia and Tanzania.
The company expects to move into Ethiopia, Libya, Somaliland and South Sudan in the next year…-Interview
…To reduce its reliance on Khartoum, the South Sudanese government has announced a 2,000 km pipeline, at a cost of $3bn, through Kenya to its port of Lamu. G4S is one of the companies vying to help secure this vital source of South Sudanese revenue… -separate source–see below
I had picked up on this project through some stories I was reading in regards to the future of this industry. That the companies are looking for business in resource rich Africa, and much of that business revolves around energy related projects.
This particular project grabbed my attention, just because of how ambitious it is and how involved the security for it would be. Because once this is up and running, all aspects of LAPSSET will be a big target for criminals and terrorists. Especially the 2000 km of pipeline they plan on building.
So this should require the services of multiple PMSC’s to help in all aspects of securing this thing. I also imagine that some kind of oil police apparatus will have to be established, which will then require training facilities with instructors. We will see how it goes, and if any readers have any other details about this massive project, feel free to comment below. –Matt
Lamu Port and Lamu-Southern Sudan-Ethiopia Transport Corridor
The Lamu Port and Lamu Southern Sudan-Ethiopia Transport Corridor (LAPSSET) aka The Lamu corridor is a transport and infrastructure project in Kenya that when complete will be the country’s second transport corridor. Kenya’s other transport corridor is the Mombasa port and Mombasa – Uganda transport corridor that passes through Nairobi and much of the Northern Rift.
The project will involve the following components:
-A port at Manda Bay
-Standard gauge railway line to Juba (capital of South Sudan)
-Road network
-Oil pipelines (Southern Sudan and Ethiopia)
-Oil refinery at Bargoni
-Three Airports
-Three resort cities (Lamu, Isiolo and Lake Turkana shores)
The project was initially conceived in 1975 but never took off due to various reasons. The project was later revived and included in Kenya’s Vision 2030. LAPSSET cost was estimated to cost $ 16 Billion in 2009. Recent estimates arrived after studies now put the cost of the project at between US $ 22 Billion and US $ 23 Billion.
The timeline of the project is not clear including when it started and when it should be finished. Some projects like the Isiolo-Merille projects began in 2007. At the peak of the project, between 2013 and 2018, it is expected that the Kenyan government will be spending about 6% of the country’s Gross Domestic Product or 16% of its annual budget on the project. The project is in turn expected to contribute an additional 3% increase in Kenya’s GDP by 2020.
Key towns in the project are Lamu & Isiolo in Kenya, Juba in Southern Sudan and Addis Ababa in Ethiopia.
Wikipedia for LAPSSET here.
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Lamu port project launched for South Sudan and EthiopiaMarch 02, 2012
There have been protests against the port by some environmentalists and residents of Lamu island
Construction has begun on a $23bn (£14.5bn) port project and oil refinery in south-eastern Kenya’s coastal Lamu region near war-torn Somalia’s border.
An oil pipeline, railway and motorway will also be built linking Lamu to South Sudan and Ethiopia.
Newly independent South Sudan plans to use Lamu as its main oil export outlet.
A BBC reporter says security concerns for the project may explain the presence of Ethiopian and Kenyan troops in Somalia aiming to pacify the region.
‘Biggest African project’
Kenya’s leader Mwai Kibaki launched the project along with his South Sudanese and Ethiopian counterparts, Salva Kiir and Meles Zenawi respectively.
“I have no doubt that this day will go down in history as one of the defining moments – when we made a major stride to connect our people to the many socio-economic opportunities that lie ahead,” AFP news agency quotes Mr Kibaki as saying at the inauguration ceremony.
Known as Lamu Port South Sudan Ethiopia Transport Corridor (Lapsset), it is expected to be completed within four years with initial costs coming from the three governments and plans to attract international investment.
Steven Ikuwa, the administrator in charge of Lapsset, told the BBC the scale of the plans was huge.
“I am proud to say this is one of the biggest projects that we are carrying out in Africa.”
The BBC’s Noel Mwakugu in Lamu says there are worries about the impact of the project on Lamu district, which is one of East Africa’s most beautiful and relatively unspoiled environments along the Indian Ocean and includes a cultural heritage site on Lamu Island.
“Lamu is a living heritage. Already Unesco has declared Lamu a World Heritage Site – as an endangered site,” Mualimu Badi from the Save Lamu group told the BBC.
“If 500,000 people come to work as workers, we stand to lose that status.”
Mr Badi also said local residents fear they would be made homeless by the project as most people in the area are unable to prove their right to live in their homes.
In response to these complaints, Mr Kibaki has announced that residents will be issued with land title deeds and his administration will provide training for 1,000 young people to prepare for future opportunities presented by the port.
Oil export alternatives
Our correspondent says Lamu’s 32-berth port will be five times larger than Kenya’s only other Indian Ocean port, Mombasa – which has been struggling to serve the needs of landlocked countries to the south and west of Kenya.
Tourism plays a large part in the local economy around Lamu
Lamu will allow Kenya to earn more revenue from its northern landlocked neighbours, he says.
Ethiopia will have an alternative sea port to Djibouti and another export route if oil is discovered in its Ogaden region, which borders Somalia and where oil exploration is currently under way.
For South Sudan, it offers a solution to its dependence on Sudan from which it split last July – six years after the end of a bitter civil war.
Since the secession, the two countries have been embroiled in a dispute over oil, with South Sudan turning off the tap on its oil exports though Sudan.
Our reporter says the project will also open up development to northern parts of Kenya, which has been neglected since independence from the UK in 1963.
The north-east of Kenya also hosts the world’s largest refugee camp, Dadaab, home to more than 450,000 Somalis who have fled conflict and famine during the past 21 years.
Kenya sent in troops over its long border with Somalia in pursuit of al-Shabab militants in October, after several people, including foreign tourists, were kidnapped, including some from near Lamu.
The authorities in Kenya blame the Islamist al-Shabab group, which controls much of southern and central Somalia, for much of the instability affecting the sub-region.
Analysts say Kenya and Ethiopia, whose troops now occupy substantial parts of the country, hope that with progress on the military front, Somalia’s bickering politicians can come up with a new constitution that will allow elections to be held and relative peace to return to the lawless country.
Story here.
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INTERVIEW-G4S eyes Africa as resources sector booms
By Neil Maidment
May 3, 2012
G4S is targeting a rising number of opportunities in Africa’s buoyant natural resources sector, as the world’s largest security company ramps up expansion in emerging markets to drive growth.
Africa’s growing number of multibillion dollar oil, gas and mining projects in countries such as Angola, Mozambique and Nigeria are at the heart of G4S’s plan to expand from its traditional manned security work toward risk assessments on new pipelines and refineries and protecting offshore rigs.
“In Africa we are moving towards delivery of much broader, integrated and sustainable security solutions to meet all the security risks facing major projects,” development director for oil and gas, Africa, Martin Fuller told Reuters.
“We want to be associated with the oil players and markets from a very early stage and to be a partner with them throughout their exploration and development, through to operational production stages.”
In March, G4S said it would return to targeting emerging markets, including Brazil, China and India, as it reset its sights following a failed 5.2 billion pound ($8.4 billion) takeover of Danish outsourcing firm ISS in 2011.
G4S, one of Africa’s largest private sector employers with over 100,000 staff, operates in 29 countries across the continent running embassies and armed response teams, as well as services such as cash security for banks and mine clearance.
While South Africa is its largest market, accounting for around 100 million pounds of Africa’s 500 million turnover, big resource projects elsewhere are offering faster-growth opportunities for lucrative multi-service deals as opposed to the region’s traditional single contract set-up.
G4S said it was looking at oil and gas based prospects in countries like Guinea-Bissau, Nigeria and South Sudan, where a huge oil pipeline could be built through Kenya to a port there in order to bypass bitter disputes with neighbouring Sudan.
High potential mining opportunities are also in countries such as Botswana, Ghana, Namibia and Tanzania.
The company expects to move into Ethiopia, Libya, Somaliland and South Sudan in the next year.
UK and Africa chief executive David Taylor Smith told Reuters G4S expected double0digit revenue growth in Africa this year, and to help drive future progress would also focus on winning work in the telecoms sector and with governmental organisations like embassies and the United Nations.
The group said it was in talks with a number of governments and large multi-national firms looking to put pan-regional security based deals in place.
Small bolt-on acquisitions were also on the agenda, Taylor Smith said: “We are interested in anything that takes us up in oil and gas, mining, or ports”, adding this could be in the form of physical security or consultancy capabilities.
The group is also looking to expand its remote camp facilities management business into Africa, having built and operated secure camps in Afghanistan and Iraq and provided services for the U.S. military.
Globally, G4S works in over 125 countries, running services such as prisons and cash transportation, as well as security for events like London’s 2012 Olympic Games.
Story here.—————————————————————-
…There are a large number of major natural resource projects in Africa and the world’s private security firms are lining up to bid to protect them. South Sudan has an estimated 7bn barrels of proven oil reserves. Its problem is getting it out of the landlocked country. It recently struck a deal with Sudan, after a long period of deadlock over fees, to transport it through its northern neighbour’s land.
To reduce its reliance on Khartoum, the South Sudanese government has announced a 2,000 km pipeline, at a cost of $3bn, through Kenya to its port of Lamu. G4S is one of the companies vying to help secure this vital source of South Sudanese revenue…
Story here.