A high-level delegation from the Kurdistan Regional Government (KRG) arrived in Baghdad on Monday as Erbil and the federal government move closer to a final agreement to resolve their long-standing financial and oil disputes, a well-informed source told Rudaw.

The delegation includes Kamal Mohammed, the KRG’s acting minister of natural resources, and Amanj Rahim, the KRG Cabinet Secretary, according to the anonymous source.

The visit comes as Baghdad has prepared a draft agreement on oil exports and is awaiting Erbil’s response, which is expected later on Monday. The KRG delegation has already begun meetings with federal authorities.

A separate source close to the KRG, speaking on condition of anonymity due to the sensitivity of the talks, confirmed on Sunday that the proposed deal is in its "final stages."

Under the agreement, the KRG will hand over all crude oil production to Baghdad, while the federal government will supply the Kurdistan Region with refined petroleum products for domestic needs.

Oil exports through the Iraq-Turkey pipeline have been suspended since March 2023, following an International Chamber of Commerce (ICC) arbitration ruling in Paris. The ruling stated that Turkey had violated a 1973 pipeline agreement by allowing the KRG to independently export oil starting in 2014.

Last week, KRG Prime Minister Masrour Barzani said the halt in exports has cost the region over $25 billion in lost revenue, underscoring the urgency of a resolution.