Norwegian oil producer DNO International said on Monday it has received formal approval from Iraq's regional government in Kurdistan to start exporting crude oil from its field in northern Iraq.

The statement follows a breakthrough in a bitter feud over control of Iraq's oil wealth between the central government in Baghdad and the Kurdish authorities.

DNO has said previously it could ramp up Iraq production to about 50,000 barrels per day once it gains an export licence.

'DNO has now been given formal notice by the Kurdistan regional government (KRG) to commence export of crude oil from the Tawke field on June 1, 2009,' DNO said in a statement.

'The KRG has also instructed DNO to complete any outstanding work and undertake all necessary preparations to ensure safe and smooth operation on the commencement date,' it added.-Reuters