"We see this reconciliation as a positive development in terms of international security of energy supplies and our country's energy cooperation with Iraq," the foreign ministry said in a statement late on Tuesday.

The ministry also said the agreement would help solve problems between the central government in Baghdad and Iraqi Kurdistan, and ultimately help Iraq's security and the development of its energy sector.

Baghdad on Tuesday agreed with the autonomous Kurdish region to share the country's oil wealth in a deal boosting prospects of closer cooperation against jihadists in control of swathes of the country.

The deal settled a long-running dispute between the two sides over the budget and oil exports.

Ankara has enjoyed flourishing ties with Iraqi Kurds and its decision to help the Kurdish region in northern Iraq export oil independently through Turkish soil has angered Baghdad, which considers it illegal.

Turkish Prime Minister Ahmet Davutoglu visited Iraq last month for a meeting with his Iraqi counterpart Haidar al-Abadi in a sign of an easing in the strain between the two neighbouring countries.

The Iraqi premier is expected to visit Ankara in December.