CHAIRMAN ’S REPORT
4
Mermaid Marine made great progress during the year to 30th June 2000, even though trading
reflected low levels of activity in the North West. Prospects over recent months have rapidly
improved, with a great deal of large project work in prospect. The Prospectus concept of building
our business within the triangle of oil and gas reserves found between Timor, Exmouth and
Darwin, is proven and has become even more relevant. 
Rich in gas, the region is rapidly becoming Australia’s powerhouse and the focus of new resource
processing industries. In a statement made in only August this year, the Shell Oil Company
identified gas as that Company’s premier future fuel, due to its high environmental qualifications
and portability. The Federal Government, also recognising the environmental advantages of gas,
has identified that liquified natural gas in particular, as a greenhouse solution rather than a
problem and has effectively exempted the gas industry from Kyoto protocol restraints.
Woodside Petroleum has announced the signing of Memorandums of understanding for
substantial gas contracts to a range of companies planning to establish their production in the
Pilbara. At the time of writing this report, firm Letters of Intent were also foreshadowed for
substantial increases in LNG production, specifically to Japan and prospects are high for further
export sales to China, Singapore and India. 
Providing marine support for such expansion has been our principle source of earnings, but
Mermaid will enjoy a larger and more diversified income stream once development of the Base
at Dampier is completed. The project, demonstrated in more detail later in this report, will
revolutionise our Company and drive significant changes in the way offshore producers are
serviced in the North West of Australia.
Coinciding with a start of Base construction, we were successful in attracting Mr Mark Bradley,
formerly Managing Director of Clough Offshore, to join us as Mermaid ’s Chief Executive. As
reported by the Age newspaper, our new Chief Executive has put his money where his mouth is,
offering a personal investment of $2 million for equity in our company. Mark has had an
extremely successful career with McDermotts and Clough Offshore. He will now drive the
development of a much stronger engineering capability at Mermaid, through which, whether in
joint venture or alone, we intend to be more closely involved as direct participants in North
West Shelf work.
Immediately following Mark Bradley ’s decision, his old employer, Clough Engineering, also
expressed a desire to become a shareholder, subscribing $3 million for new equity. The influence
that the direct involvement of Mark Bradley and Clough Engineering will have in our company’s
future should not be underestimated. At this time when we welcome Mark as a Director and
shareholder, we are also pleased to announce the appointment of Mr Richard Reid, finance