A dispute between Iraq's northern Kurdish region and the central government is meant to be resolved and the region should start pumping oil for export in early 2011, Iraqi Oil Minister Hussain al-Shahristani said on Monday.

The semi-autonomous northern area, locked in a dispute with the Baghdad government that halted exports last year, could produce 150,000 barrels per day next year, Shahristani told reporters in Baghdad when asked if the dispute between the two governments had been resolved.

"It is supposed to be resolved and the region will start handing over the oil at the beginning of next year," he said.

"The region informed us that they could produce 150,000 barrels (per day) next year."