The Hurriyet daily cited the country's energy minister Taner Yildiz as saying the oil has already started flowing along the pipeline from Iraq.

It is hoped tankers could be loaded by the end of January if the Iraqi government gives the go-ahead.

"The flow of crude oil from northern Iraq has begun and is being stored in tanks. I hope that the oil from northern Iraq will be exported to world markets after obtaining full agreement," Yildiz told a news conference.