Secretary of State Hillary Clinton and Mexico's foreign minister signed the pact today.
It spells out how oil and gas reservoirs along boundaries in the Gulf of Mexico will be handled.
The agreement sets up incentives for American energy companies to work with Mexico's state oil company and provides for inspections.
The accord ends a moratorium on oil production and exploration in a portion of the Gulf of Mexico.
Clinton said the reservoirs hold a "considerable" amount of oil.
(Copyright 2012 by VERTEXNews/Newsroom Solutions)