Iraqi Oil Minister Hussain Shahristani visited the region recently, after which ministry spokesman Asem Jihad said the Kurds had permission to ship oil to Turkey using a twin Iraqi pipeline.

The official did not say who would receive royalties from the shipments, but Kurds said production should reach 250,000 barrels a day by the end of next year. The three main oilfields in Dahouk should produce 1 million barrels a day in time, the Iraqi daily newspaper Azzaman reported Friday.

Azzaman said the Kurdish enclave in Iraq includes billions of barrels in three provinces: Dahouk, Arbil and Sulaimaniya.

Kurds are also interested in annexing the province of Kirkuk, where reserves are estimated at more than 15 billion barrels, the newspaper said.