Unnamed Client in Mexico Owes SLB, Halliburton Over $1 Billion

SLB and Halliburton Co., two of the biggest oil field contractors, warned investors that the magnitude of unpaid work in Mexico has grown over the past three months.

(Bloomberg) — SLB and Halliburton Co., two of the biggest oil field contractors, warned investors that the magnitude of unpaid work in Mexico has grown over the past three months.

SLB had $1.2 billion of so-called receivables related to Mexico at the end of last month, the company said Wednesday in a federal filing. That’s up 20% from the end of last year. Over the same period, Halliburton said in separate filing that unpaid bills from its unnamed “primary customer” in Mexico has expanded to represent a larger piece of its overall collections.

Both companies say that the amounts owed to them are not in dispute and have not had any material write-offs related to their top client in the country.

Oil production in Mexico has declined as state producer Petroleos Mexicanos, has seen output fall almost every year for more than a decade. Meanwhile its debt soared to $107.7 billion by the end of last year.

–With assistance from Amy Stillman.

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