The U.S. and Mexico agreed to work together in drilling for oil and gas below their maritime border in the Gulf of Mexico, The Associated Press reported.
According to the news outlet, Secretary of State Hillary Rodham Clinton and Mexico's foreign minister signed the deal at a ceremony in Los Cabos, as Interior Secretary Ken Salazar and Mexican President Felipe Calderon looked on.
The AP reported that the cooperation between the two countries dates back to an agreement between President Barack Obama and Calderon regarding a move to share in the profits and work together to avoid spills.
Clinton said that the deal would help to "ensure safe, efficient, responsible exploration of the oil and gas reservoirs in the Gulf of Mexico."
"These reservoirs could hold considerable reserves that would benefit the United States and Mexico alike," she continued, noting that the agreement would prevent disputes over who should get the rights to the resources and who would do the extraction.
The New York Times reported that the deal is called "The Transboundary Agreement" and will make up to 1.5 million acres of offshore territory claimed by the U.S. available for leasing by June 2012.