U.S. oilfield service provider Halliburton faces pressure to reactivate business in Mexico due to declining oil production rates and delays in payments from Pemex, which saw an 8.4% decrease in crude output in May to 1.64 million barrels per day.

Halliburton and larger rival SLB both express concerns over unresolved payment issues with Pemex, the world’s most indebted energy company. SLB’s CEO Olivier Le Peuch emphasizes the need for critical issues to be addressed for a rebound in Mexico’s oil sector.

SLB is willing to collaborate with Pemex to resolve payment issues, as foreign oil service companies in Mexico warn they may have to halt operations in July due to outstanding debts totaling $20 billion to suppliers and contractors.

Mexico’s oilfield services sector has significantly contracted due to lack of payments, with Halliburton expecting a decline in international revenue driven by reduced activity in Saudi Arabia and Mexico despite posting second-quarter earnings.

Read more at Yahoo Finance: Halliburton says Mexico oil output decline rates will pressure reactivation of business