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The reopening of the Kirkuk-Ceyhan pipeline, which has been shut for a decade, would provide a rival route to a pipeline from Iraq's Kurdistan region.
An ongoing dispute between the Iraqi federal government and KRG over oil has led to political deadlock, with some energy and political experts offering a way out.
'We have an initial understanding [with the KRG], God willing we will reach a solution within the coming three days,' Iraq's oil minister said on Sunday.
A suspension in Kurdistan oil exports abroad has halted debt repayments, worrying actors in the semi-autonomous region and Baghdad.
Political disputes and cost disagreements have stalled Iraqi Kurdistan oil exports since March 2023, with no resolution in sight.
The agreement, signed in Baghdad in the presence of Prime Minister Mohamed Shia Al-Sudani and Kurdish premier Masrour Barzani, was to be implemented 'today', a Kurdish regional government official said.
Iraqi Kurdish Prime Minister Masrour Barzani met with Turkey's Foreign Minister Hakan Fidan and its Energy Minister Alparslan Bayraktar in Erbil, the government of the Kurdistan region said.
Dana Gas said that while there was 'very minor damage to the facilities', it has 'temporarily suspended production and instituted specific procedural changes'.
Iraq aims to establish a new oil company in the northern Kurdish region, months after a federal court ruling deemed the legal foundations of the Kurdistan region's oil and gas sector unconstitutional
Iraq's Kurdish region has rejected an order from Baghdad that they must handover control of its oil output to the federal government.