Halliburton sees Mexico's Pemex reducing activity for 2013

Tue May 21, 2013 10:31am EDT

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May 21 (Reuters) - Halliburton Co, the world's
second-largest oilfield services company, said on Tuesday that
Mexican state oil company Pemex was delaying any significant
activity at its Burgos and Chicontepec projects until next year.
    Chief Financial Officer Mark McCollum said Halliburton's
Latin American margins would be weighed down this year by the
reduction in activity at the projects. He added that Pemex,
ahead of a July tender on the projects, was also reducing rigs
run by Schlumberger and Weatherford.
    "They're essentially delaying significant activity until
2014," McCollum said at the UBS Global Oil and Gas Conference.
    Shares of Halliburton fell 2.2 percent to $44.51 in early
trading on Tuesday.
    In North America, McCollum said the market for pressure
pumping equipment - used for hydraulic fracturing of wells -
remained 20 percent over-supplied, which should be reduced by
half by the end of 2013.
    There was further pricing pressure in North America in the
second quarter, he added, though the number of rigs working in
the region should rise by between 100 and 150 rigs by the end of
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

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