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BREAKING NEWS FROM CNBC'S MICHELLE CARUSO-CABRERA: FOR FIRST TIME IN 70 YEARS MEXICO WILL ALLOW PRIVATE COMPANIES TO DRILL FOR OIL

WHEN: TODAY, WEDNESDAY, DECEMBER 8TH

WHERE: CNBC'S "SQUAWK ON THE STREET"

Following is the unofficial transcript of breaking news from CNBC's

Michelle Caruso-Cabrera

. All references must be sourced to CNBC.

CARUSO-CABRERA: FOR THE FIRST TIME IN 70 YEARS ERIN MEXICO IS GOING TO ALLOW PRIVATE COMPANIES TO DRILL FOR OIL IN MEXICO THIS IS A HUGE SHIFT FOR MEXICO IT COMES AS A RESULT OF A SUPREME COURT DECISION LATE YESTERDAY AND I HAVE JUST GOTTEN OFF THE PHONE WITH THE CEO OF PEMEX THE MEXICAN OIL COMPANY AND HERE IS WHAT HE IS TELLING ME HE THINKS THEY CAN GET OIL PRODUCTION THERE TO RISE TO 3 MILLION BARRELS A DAY IN 10 YEARS THAT IS RIGHT NOW FROM 2.56 MILLION BARRELS A DAY THIS IS CRUCIAL FOR THEM BECAUSE EVEN THOUGH THEY HAVE SO MUCH OIL THEY DON'Y HAVE THE INFRASTUCTURE AND AT ONE POINT IF THEY DIDN'T TURN THINGS AROUND THEY WERE GOING TO END UP IMPORTING OIL INTO MEXICO IF YOU CAN BELIEVE THAT. HERE'S WHAT'S CRUCIAL THEY ARE GOING TO BID OUT PRIVATE SERVICE CONTRACTS SO ITS NOT LIKE THEY ARE GOING TO PRIVATIZE OIL FIELDS OR ANYTHING LIKE THAT THEY'RE GOING TO PAY A PERCENTAGE OF PRODUCTION COSTS AND A PERCENTAGE PER BARREL AND THEN THEY'RE GOING TO ALLOW EITHER FOREIGN COMPANIES OR LOCAL PRIVATE COMPANIES TO GO IN AND DRILL IN AN EFFORT TO GET THEIR OIL PRODUCTION UP. BUT AGAIN IT IS CRUCIAL MEXICO IS STILL GOING TO OWN THE OIL THAT IS A VERY POLITICALLY SENSITIVE TOPIC DOWN THERE.

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