press release

ChevronTexaco and Compass Announce Largest Agreement in Catering Industry History

SAN FRANCISCO and LONDON, January 14, 2002 -- ChevronTexaco Corp. and Compass Group today announced finalization of a 10-year "Preferred Supplier" agreement believed to be the largest ever negotiated in the catering industry.

The agreement, valued at more than $200 million a year, covers catering and facilities management for most ChevronTexaco facilities, offshore platforms, refineries and office locations worldwide.

"We expect to maintain or enhance quality standards and locally sourced content while saving at least $20 million a year compared with current spending," said Helmut Porkert, chief procurement officer of ChevronTexaco. "This is another step in our company's efforts to buy smarter in support of our company goals of operational excellence, cost reduction and capital stewardship."

A Compass subsidiary, Eurest Support Services (ESS) will begin significantly expanding its current business with ChevronTexaco later this quarter at the ChevronTexaco-affiliated Tengiz Field in Kazakhstan. ESS will assume operation of four food facilities there that prepare more than 10,000 meals a day, as well as building maintenance, transportation and other janitorial and office services. ESS will use Kazakh-sourced food products and goods as well as Kazakh subcontractors as much as possible. The agreement anticipates that in the next two years most operations of ChevronTexaco in North America, Latin America, Australasia, Middle East, Asia, Europe, Eurasia and Africa will come under the scope of the "Preferred Supplier" agreement, sharply reducing the current number of vendors. Compass will make widespread use of local suppliers in support of ChevronTexaco's pledge to maintain partnerships in communities where it operates.

Michael J. Bailey, chief executive, Compass Group, said, "We are delighted to secure such a prestigious and extensive agreement with one of the world's leading companies, thereby significantly strengthening our position as the global leader in the provision of services in the Remote Site and Offshore market sectors. We welcome ChevronTexaco to our ever-growing portfolio of multi-national clients, which include world leaders like IBM, Philips and American Express. This historic agreement reinforces our confidence in the Group's ability to meet our stated sales growth target of 6 to 9 percent for the current year."

Peter R. Harris, chief executive, ESS, stated, "Key to this major success, is the strategic partnering approach to business common to both ChevronTexaco and Eurest Support Services. Whilst ESS was already the clear market leader prior to this important gain, this agreement creates unprecedented growth potential in markets of particular importance to ESS and Compass. Our belief is that by being "best-in-class" and by partnering with "best-in-class" companies such as ChevronTexaco, ESS will continue to grow in this significant and exciting sector."

Harris said the award of "Preferred Supplier" status to ESS was based not only upon his company's demonstrable global and regional experience and capability, but also the close cultural fit and similarity of strategic approach between ChevronTexaco and ESS on such important issues as:

  • the promotion of local employment and development of local businesses;
  • the delivery of operational excellence;
  • the care for and management of health, safety and the environment;
  • financial stability and performance.

About ChevronTexaco

Based in San Francisco, ChevronTexaco Corp. is the second-largest U.S.-based energy company and the fifth largest in the world, based on market capitalization. More than 53,000 ChevronTexaco employees work in approximately 180 countries around the world, producing oil and natural gas and marketing fuels and other energy products.

About Compass Group

Compass Group is the world's largest food service company employing over 270,000 people in over 90 countries. Compass Group provides catering for clients including major employers, educational establishments, hospitals, leisure venues, retail locations and at major airports and stations throughout USA, Europe, and developing markets in Asia and South America.

Updated: January 2002