OPERATIONS REVIEW
18
Mermaid Marine services base at the Port of Broome (Broome Base)
commenced operations on 1 February 2000 when the first ship containing drill pipe for Inpex
Browse Ltd arrived from Japan.
As a result of Mermaid’s efforts in establishing the Broome Base, Inpex Browse Ltd., BHP Petroleum
and Woodside have used Broome as their base for drilling a total of four (4) offshore wells.
It is presently expected that at least six
(6) exploration wells will be drilled in the
area during 2001. The Base now employs
as many as ten (10) staff up from the
three (3) who commenced in February
2000. Excellent management and staff
competence are the prime factors, which
have delivered the smooth start up and
continued success at Broome.
The base is currently secured on a come and go lease arrangement, located on Port premises
adjacent to the wharf gates. Although convenient, with an excellent cyclone proof building, the
site has limitations in terms of size and slope. An area more suitable for our long term needs has
been optioned from Port authorities and discussions will proceed with our clients this year to
determine their precise needs.
The success of Browse Basin wells drilled this year, strong developments in the energy sector and
the intention of operators to base their 2001 operations in Broome, have encouraged the Board
to consider further investment to ensure that capability keeps pace with demand and that we
leave no reason for competitors to offer more or better.  
The offshore waters of the Northern Territory, the Zone of Co-Operation (ZOCA) between Australia
and Timor, and the Commonwealth Territory of Ashmore and Cartier host approximately 35% of the
exploration and development budgets of Australian offshore oil and gas industry.
T wo large projects are under study or implementation in these waters; the Phillips Petroleum
Bayu-Undang Project and the Woodside Sunrise Troubador Project.
T wo large petrochemical projects are under study for the Darwin area based upon pipelines from
the Timor Sea gas resources of the projects above.
Darwin will within 3 years be the northern terminus of the Australian national rail system with the
completion of the Alice Springs Darwin rail link, further expanding its role in Australia’s economy.
BROOME SUPPLY BASE
DARWIN BASE
The Mermaid Broome Supply Base certified Impex, Woodside 
and BHP Petroleum exploration program during 2000.