SANTOS LIMITED — Regulatory Filings 2004

Jan 14, 2004

1 PAGE INCLUDING THIS PAGE

15 January 2004

The Listing Manager Australian Stock Exchange Exchange Centre Level 6 20 Bridge Street SYDNEY NSW 2000

Eagle jetty, 20 Mews Road
FREMANTLE WA 6160
TEL: (+61) 8 9431 7431
FAX: (+61) 8 9431 7432 EMAIL: corporate@mermaidmarine.com.au WEB: www.memaidmarine.com.au

Dear Sir/Madam

RE: SANTOS CONTRACT

Mermaid Marine Australia Limited is pleased to have been awarded a contract to provide logistics and supply base support to the upcoming Santos Mutineer/Exeter development, scheduled to commence in March 2004. This is a A\$480 million project in the Carnarvon Basin, expected to produce first oil by approximately mid 2005 with an estimated production life of around 7 years.

An Alliance with Brambles Ltd was announced at Mermaid Marine's AGM and the Santos contract offers the first opportunity to use that relationship to offer our Client an expanded range of services, facilities, equipment and backup.

Development of Mermaid's Dampier Supply Base was a significant commitment for the Company but was based on evidence for an integrated approach that linked shore based supply services to marine operations through a dedicated waterfront facility. The concept is established practice in other parts of the World and we look forward to more consistent and increased earnings from such activities here.

This contract together with BHP Billiton's move to the Supply Base in April 2003, has expedited Mermaid's plans to expand loading and unloading areas on the wharf, which for the past few months has often operated at maximum capacity. A doubling of the working area is contemplated with test and design work now started. Final details on this project will be announced soon and as currently contemplated, will be funded from cash in hand.

Any questions or additional information required concerning the above should be directed to Alan Birchmore, Chairman on 08 9431 7431.

By order of the Board MERMAID MARINE AUSTRALIA LIMITED

BRENDAN GORE Company Secretary

BRACKE Mermaid Supply Base Broome 1 Port Drive, Broome, WA 6725 TEL (+61) 8 9192 2200 FAX (+61) 8 9192 2281 EMAIL broome@mermaidmarine.com.au