Baghdad has agreed to send 147,000 barrels a day of refined oil products to the Kurdistan region as part of a deal to end disputes over oil payments.

The Kurdistan Regional Government (KRG) has welcomed the move, which accounts for 17 per cent of all of Iraq’s refined products capacity being sent to the semi-autonomous state.

MEED reported in mid-September that Baghdad have agreed to pay $1.5bn to oil companies working in the Kurdistan region.

As part of the deal, the KRG has also agreed to continue oil exports through Iraq’s northern pipeline to Turkey. The KRG had previously threatened to cut off its exports due to the dispute, which began in March.