BAGHDAD (AP) — Iraqi officials say the government has agreed “in principle” on a long-anticipated oil-sharing deal with the northern Kurdish region.

Two Iraqi government officials said Monday that the Kurds agreed to contribute 250,000 barrels per day of oil to the federal government by the start of next year in return for a greater share of the federal budget, which they will use to pay public sector salaries.

The officials say the deal, which has been in the works for months, will be the main pillar of a broader agreement to address longstanding political issues.

The Kurds’ independent oil policy has long been a source of friction with the federal government.

The officials spoke on condition of anonymity because they were not authorized to brief media.