Officials from the United States and Mexico signed an agreement Monday that would allow for the development of oil and natural gas reservoirs along the two countries’ maritime boundary in the Gulf of Mexico (GOM).

The transboundary agreement removes a ban on exploration and production activities in nearly 1.5 million acres of U.S. Outer Continental Shelf, which the Interior Department estimates contain as much as 304 Bcf of natural gas and 172 million bbl of oil.

The agreement also would open up resources in the Western Gap — located in the western planning area of the GOM — that were off limits to both countries under a previous treaty, which imposed a moratorium along the boundary through 2014.

The signing ceremony occurred in Los Cabos, Mexico, and was attended by Interior Secretary Ken Salazar, Secretary of State Hillary Rodham Clinton, Mexico’s Minister of Foreign Relations Patricia Espinosa and Mexico’s Minister of Energy Jordy Herrera. The U.S. Senate and Mexican Senate will have to approve the deal.

The agreement sets guidelines for U.S. producers and Mexico’s state oil company Petroleos Mexicanos (Pemex) to agree to jointly develop the boundary-hugging reserves. If consensus cannot be reached, the agreement establishes a process through which U.S. producers and Pemex can individually develop the resources on each side of the border while protecting each nation’s interests and resources.

Activity along the transboundary would be jointly inspected by Interior’s Bureau of Safety and Environmental Enforcement and the Mexican government, according to Interior. It further noted that U.S. and Mexican agencies will review all plans for the development of transboundary reservoirs.

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