The Sudanese government said a team from the Petroleum Ministry was in Baghdad. Sudanese Investment Minister Mustafa Osman told reporters in Khartoum that Iraq was responding to Sudan's growing energy needs.
The independent Sudan Tribune reports Sudan has struggled to satisfy local demand for oil since South Sudan became an independent country in 2011.
"There is now a technical team from the Sudanese petroleum ministry [in Iraq] to discuss technical issues of a deal in terms of volumes and payments," Osman was quoted as saying Tuesday.
Sudan in May confirmed it was getting oil from South Sudan after government officials agreed in April to resume bilateral cooperation.
South Sudan gained control of most of the region's oil reserves when it gained independence. Sudan, however, controls the export infrastructure.
The Sudanese government last year enacted strict austerity measures to cope with the decline in oil revenue.