Halliburton contract dispute in Vaca Muerta

In the Vaca Muerta region, Halliburton Argentina has requested that its suppliers implement a 23% reduction in current contract values for the period between August and December 2026. This demand has met strong opposition from local business chambers, including the Federation of Energy Sector Chambers of Neuquén (FECENE) and the Chamber of Companies, Industry, and Services of Añelo (CEISA), who argue the measure was communicated without prior negotiation.

Industry entities and the Private Oil and Gas Union of Neuquén, Río Negro, and La Pampa have warned that these unilateral cuts could jeopardize the financial stability of regional small and medium-sized enterprises (SMEs), potentially impacting safety standards, technology, and employment.

Union General Secretary Marcelo Rucci has criticized the decision, noting that suppliers are being given only seven days to accept the terms. While Halliburton Company reported a global net profit of $534 million for the second quarter of 2026, the union maintains that the cost adjustments are being unfairly passed down to local businesses with minimal margins, placing the union on alert to protect workers' rights and job security.