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Low Oil Prices Create $1 Billion Business Killing Old Fields

  • Wood Mackenzie sees 600 fields needing decommissioning in Asia
  • Oilfield service firms have been battered by crude crash
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Deal or No Deal: What's Ahead for Oil?

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Low crude prices that have been hammering oilfield service companies for the past two years might be ready to give a little back.

Sinopec Oilfield Service Corp., Keppel Corp. Ltd. and others will have a chance to fight for $1 billion a year in new business in Asia as the crude crash forces energy producers to decommission aging and unprofitable fields, industry analyst Wood Mackenzie Ltd. said in a new report. More than 600 fields, mostly in China, Australia, Indonesia and Malaysia, could be shut down over the next decade.