Cedric Burgher, vice president of investor relations, told The Dallas Morning News for its Wednesday editions that the SEC's concerns revolve around accounting changes that the company made in 1998.

The company said it believes the SEC's interest stems from a story in The New York Times last Wednesday.

The Times story said the Dallas-based company was counting cost overruns on construction projects as additional revenue, even before the customer agreed to pay for the overruns.

Burgher said the company believes it adhered to generally accepted accounting principles.

Vice President Dick Cheney was chairman and chief executive of the world's largest oil field services company from 1995 to 2000.

The SEC's investigation is the latest in a series of federal probes into accounting questions at energy and technology companies.

After the collapse of energy trader Enron Corp. amid accounting questions, Enron's auditor Arthur Andersen LLP is on trial on federal obstruction-of-justice charges and the SEC is investigating accounting at Qwest Communications International Inc., Computer Associates International Inc. (NYSE:CA - News) and Peregrine Systems Inc.

Qwest, Peregrine and Halliburton were clients of Andersen, and all have subsequently dismissed the firm.

"Clearly this feels like an era of heightened scrutiny on accounting issues," Burgher said.

Halliburton announced earlier Tuesday that it has settled 30 lawsuits pending against it in a New York federal court.

The lawsuits had sought millions of dollars in damages from those with lung cancers allegedly caused by asbestos exposure. The company declined to release terms of the settlements.

In recent months, Halliburton lost verdicts totaling more than $150 million in asbestos cases.

Some of Halliburton's units and former subsidiaries made construction products with the heat-resistant material. Most of the claims were filed by workers who alleged they had developed cancer from inhaling the asbestos fibers.