A British consulate vehicle has been hit by a roadside bomb near the southern Iraqi city of Basra, killing two Britons working for a private security firm, according to the UK consulate and the company.

Karen McLuskie with the consulate in Basra said the attack occurred at 0930 on Saturday as the convoy was passing on the southwestern edge of the port city.

The two killed were security contractors employed by Control Risks Group and both were British citizens, said Peter Stevenson, a spokesman for the London-based security company. No further details were available.

The British embassy in Baghdad said an investigation had been launched into the incident.

Reuters television footage showed a dark blue four-wheel-drive vehicle with smashed paneling and blood on a side window. Iraqi police and British forces were at the scene.

Basra, Iraq's second-largest city, has been relatively calm over the past 1-1/2 years, although there are occasional outbreaks of violence. British forces are responsible for security in the city and towns in southern Iraq.

PHOTO CAPTION

British troops in Basra July 30, 2005. (AP)