Norway's DNO International said it has not yet been paid for nearly three months of oil exports from Iraq, but voiced hope its Kurdish partners would soon iron out a deal with Baghdad authorities over dividing oil revenues.

Cash from selling oil to local Iraqi markets has covered DNO's total production costs in Iraq so far, and analysts expect the company to be able to hold out for a deal for some time, according to a report in our sister newspaper Gulf Daily News.

'We're not too worried about their financial situation for the time being, but there will be a lot of focus on receivables and available cash going forward,' said Marius Gaard, an analyst at brokerage Carnegie in Oslo.

Trond Omdal, an analyst at Arctic Securities in Oslo, said DNO would probably be able to retain liquidity 'well into 2010'.

Unpaid export receivables accounted for about a third of DNO's total second quarter revenues of 358 million Norwegian crowns ($58.11 million) crowns, analysts said.

DNO was the first foreign oil company to drill in post-war Iraq but has yet to capitalise on its trailblazer status due to continued disagreements between its partner, the Kurdistan Regional Government, and central authorities in Baghdad.

The feud is rooted in the struggle over Iraq's vast oil wealth and disputes over the scope of regional autonomy.

The lack of a national oil law has curbed foreign investment, although Iraqi oil output is rising.

Chief executive Helge Eide repeated that DNO was not directly involved in the talks over the pay deal, which he said were keenly watched by other oil companies interested in Iraq.