Iraq expects to reach an agreement with the Kurdistan Regional Government (KRG) to restart oil export flows from the country's semi-autonomous Kurdistan Region within two weeks, Oil Minister Hayan Abdel-Ghani said at a conference in Baghdad on Wednesday.

Turkey halted Iraq's 450,000 barrels per day (bpd) of northern exports through the Iraq-Turkey pipeline on March 25 after an arbitration ruling by the International Chamber of Commerce (ICC). The 40 days of stoppage are estimated to have cost the KRG more than $1 billion.

The ICC ordered Turkey to pay Baghdad damages of $1.5 billion for unauthorised exports by the KRG between 2014 and 2018. The Iraq-Turkey pipeline had been exporting about 75,000 bpd of federal crude, with the remainder from the KRG.

Baghdad and the KRG signed a temporary agreement on April 4 to restart northern oil exports.

Efforts to restart flows are facing further setbacks as the two governments iron out several aspects of the deal.

"We haven't reached an agreement with the Kurdish side," the Iraqi minister said on Wednesday.

The KRG had agreed for Iraq's state-owned crude marketing company SOMO to market its crude.

And under the agreement on April 4, KRG oil revenues will be deposited in a bank account under the control of the KRG, which Baghdad will have access to audit, sources previously said.

But there continue to be disagreements surrounding the logistics of the bank account.

Iraq's Central Bank has approved the use of a KRG bank account with Citi in the United Arab Emirates for the SOMO oil sales, as well as the sale of KRG oil, three sources told Reuters.

However, politicians in Baghdad are now raising questions about the account, facing pressure from some members of the Coordination Framework, an alliance of Iran-aligned factions, who oppose its location, according to three sources.

No bank account has been opened, Hayan Abdel-Ghani said on Wednesday.

Citi did not immediately respond to a request for comment.

"The issue (of reaching an agreement) is not technical it's political," an industry source said.

(Reporting by Amina Ismail and Timour Azhari in Baghdad, Rowena Edwards in London, Julia Payne in Brussels, and Maha El Dahan in Dubai Additional reporting by Can Sezer in Istanbul Editing by David Goodman, Sharon Singleton and Bernadette Baum)