HOUSTON, July 22 (Reuters) -

U.S. oilfield service provider Halliburton ( HAL ) on

Tuesday said Mexico's crude production decline rates are

creating pressure for a reactivation of business amid long

delays from state-run Pemex to pay its suppliers.

Output of crude and condensate by Pemex, the largest

producer in the country, fell 8.4% in May to 1.64 million

barrels per day, according to official figures.

Oilfield service companies have significantly decreased

activities because of the lack of payments from Pemex, the

world's most indebted energy company.

Halliburton ( HAL ) said issues related to payments from Pemex have

not been resolved yet.

The Mexican association that groups foreign oil services

companies warned last month that many of these firms may have to

stop operations as early as July.

Halliburton ( HAL ), which posted second-quarter earnings on Tuesday,

said it expects its full-year international revenue to decline

by mid-single digits, year on year, primarily driven by activity

reductions in Saudi Arabia and Mexico.