World Bulletin/News Desk

The Erbil administration and Central Iraqi government have reached a final agreement over the share of the budget and oil exports Tuesday, according to Renas Cano, Kurdish Democratic Party representative in the Iraqi parliament.

According to the agreement between the parties, the Erbil administration will transfer 250,000 barrels of oil on a daily basis from its production in the Kurdish Region and 300,000 barrels of oil from production in Kirkuk to the Iraq Oil Ministry, said Cano.

"The Central Baghdad government will allocate 17 percent of the Iraqi budget to the Kurdish Regional Government," he added.  

Cano said that it is a sacrifice for the Kurdish side to accept such an agreement.

"Iraq's financial condition is in a bad situation especially with the fall in oil prices which has deepened the Iraqi financial crises." Cano said, and added that the Kurdish Regional government offered a solution to Baghdad.

Iraq's government and Kurdish authorities to export 300,000 barrels per day (bpd) of oil from Kirkuk and 250,000 bpd from the northern Kurdish region through Turkey, Finance Minister Hoshiyar Zebari said.

The agreement aims to overcome months of dispute which all but halted exports from Kirkuk and stopped payments of Kurdish salaries by the central government earlier this year.

"The deal was reached today and endorsed by the Iraqi cabinet. Now it's a done deal," Zebari told Reuters.

On Nov. 13, Baghdad and Erbil reached a preliminary agreement over oil exports and a budget share. 

Iraqi and Kurdish officials held talks in Baghdad since late Saturday in order to reach a final agreement. Kurdish officials including Prime Minister Nachirvan Barzani, Deputy Prime Minister Qubad Talabani and Natural Resources Minister Ashti Hawrami met three times with the Iraqi officials under the presidency of Iraqi Prime Minister Haider al-Abadi. 

An official statement from both parties is yet to be announced.