Iraq central government, Iraqi Kurds agree oil exports to Turkey

The initial agreement represents a breakthrough in a dispute between the two Iraqi authorities. Disagreement between the Baghdad central government and the Kurdish regional administration has held up development of oilfields for export.

"There has been an initial agreement to export Iraqi oil from the Tawke oil field," Iraqi Oil Ministry spokesman Asim Jihad told Reuters.

The Kurdish regional administration in northern Iraq announced Wednesday it would export crude oil for the first time next year. The oil will be exported from two fields in northern Iraq to the Turkish port of Ceyhan, a Kurdish oil official, Ashti Hawrami, told AP.

Iraqi Kurds insist on unilaterally signing contracts with international oil companies, an issue that has raised tensions with the central government.

Exports of 100,000 barrels per day are expected to begin from the Tawke oil field, where Norwegian oil firm DNO has a concession, at the beginning of next year, Hawrami was quoted by Reuters as saying on Thursday.

Tawke is expected to be connected to Iraq's main northern export pipeline, which reaches the Ceyhan Port, by the end of this year. A second Iraqi Kurdish oil field, Taq Taq, is due to be linked to the pipeline three to four months later, Hawrami said.

Exports from Tawke and Taq Taq combined are expected to reach 250,000 barrels per day by the end of next year, he added.

The right to sign oil deals with foreign oil firms has been a sore point between the Iraqi Kurdish regional administration and the central government. Baghdad does not recognize deals the KRG signed without its consent.

Iraq has the world's third-largest proven reserves, at around 115 billion barrels. In the absence of an oil law, Baghdad has been negotiating contracts with oil majors under old laws.