The US Department of Commerce has approved licenses to trade limited crude oil with Mexico, easing a ban of more than 40 years on its crude oil exports.
The license is expected to allow state-owned oil company Petroleos Mexicanos (Pemex) to supply heavy Mexican crude in exchange for up to 100,000 barrels a day of light oil and condensate, reported Bloomberg.
The department is expected to issue the permit for Pemex to exchange of similar amounts of US and Mexican crude by the end of this month.
Pemex said in a statement: "With light crude coming from the U.S., the country will benefit given that Pemex will mix light and heavy crudes which will result in a greater production of gasolines and diesel.
"In addition, less fuel oil will be produced and higher-quality fuels will benefit the environment."Mexico generates heavy crude oil but its refineries are designed to process lighter crude, prompting the government to approve energy reforms to allow oil imports for its refiners in 2014
Congressman Henry Roberto Cuellar said: "These swaps will further positively impact energy exploration in Texas and the United States."
The oil swaps is also expected to help boost production in oil refineries located in the US and Mexico.
US Representative Will Hurd said: "An agreement like this is a strong step toward North American energy security, which is an integral part of our National Security.
"The American Energy Renaissance that has flourished in Texas due to Eagle Ford, Permian Basin and Barnett shale exploration will continue to strengthen because of this decision."
Apart from enhancing production in the US and Mexican oil refineries, the permit is also anticipated to pave the way for additional reforms that takes North America closer towars energy independence.