Mermaid operates a fleet of fifteen (15) tugs, workboats and barges, undertaking all forms of offshore activity including exploration support, supply, survey and berthing assist. Lower vessel utilisation during the period allowed an acceleration of scheduled maintenance. Two tugs, Mermaid Commando and Mermaid Chieftan received extensive refits. In both cases the work increased productivity through enhanced bollard pull and consequent earnings. SEAGOING OPERATIONS The offshore waters and islands adjacent to Dampier, host in excess of 50% of all exploration and development budgets of Australia’s offshore oil and gas industry. The Burrup Peninsular where the Base is located is the intended site of major new oil, gas, petrochemical and industrial mineral processing plants. The Port of Dampier is Australia’s largest Port as measured by tonnage, but as identified in the 1997 WA Department of Commerce and Trade report, there remains an urgent need for additional marine support infrastructure. Mermaid is now well advanced in our plan to satisfy those needs and onshore work was announced to start on the 9th October 2000. D AMPIER BASE Safety was given the highest priority through new monitoring systems and awareness programs. Formalised on the job instruction and training courses have also lifted levels of experience and proficiency across the workforce. Since receiving approval in principle for development of the Dampier Base from the Western Australian Minister for the Environment in February 2000, engineering and general design work in connection with the base proceeded at an accelerated pace.  This work, assisted by technical studies and a re-assessment of an increased demand for services arising out of greater expectations for growth in the sector, has led to improvements and expansion of capacity over earlier plans. The Dampier Base will now comprise:- An “all tides” approach channel to a minimum depth of 6 metres  • A wharf offering 7.5 metres depth at low tide, featuring a heavy loadout section to accommodate modules of up to 1500 tonnes to onshore projects on the Burrup Peninsular and adjacent mining centres. A subsea pipe reel loading facility will encourage the use of spool ships in the region for deepwater pipelay. On a project by project basis, pipeline protection rock dumping, specialist vessel rig up activities and the like will be facilitated, as will dry and bulk cargo handling, refuelling, watering and all categories of waste reception. The joint Commonwealth and WA State Government initiative to establish an integrated industrial estate at Jervoise Bay (south of Perth) serviced by high wide load corridors from Perth’s industrial areas will see the heavy capacity wharf playing a strategic role in major capital works in the Pilbara, leading to significant cost savings. • 8 Gap OPERATIONS REVIEW