The Norwegian oil company will get half of ExxonMobil's stake in the Bashiqa block, one of three contracts it still holds with Iraqi Kurdistan, in the latest confidence-building move that could help the sector regain its momentum.

Iraq's oil minister swapped the leaders at two of Iraq's most important state-run energy companies.

Iraq is averaging higher-than-expected oil prices so far this year, but is struggling to maintain export volumes as a result of OPEC cuts and disputes with Kurdistan.

By settling with Dana Gas and partners, the Kurdistan region avoids tens of billions of dollars of potential liability and commissions massive new gas production within two years.

The first successful project from Iraq's third bidding round, in 2010, is on track to reach plateau production within five years.

A review of field and government data for July puts Iraq's nationwide oil fields at a five-month high.

Settlement of outstanding debt in exchange for assets is effectively a reset button for the Kurdistan oil sector, which is likely to quicken pace of production growth.

Slight increase in independent KRG exports offsets small reduction in federal Iraqi exports.