"Yes, we will recognise them," Luaybi told Dow Jones Newswires at a meeting in Cairo of the Organisation of Arab Petroleum Exporting Countries.

Luaybi, whose appointment to Prime Minister Nuri al-Maliki's new cabinet was approved by parliament on Tuesday, said the central government would also reimburse costs incurred by international companies investing in the region.

The minister said on Friday that the Iraqi government would activate an agreement signed with Kurdistan earlier this year to export crude oil, according to the report.

"We have already signed an agreement with Kurdistan ... God willing this agreement will be activated within a few days," he was quoted as telling reporters in Cairo.

Baghdad has long been in dispute with the government of Iraq's autonomous northern region of Kurdistan over dozens of contracts the latter signed with foreign companies.

The Iraqi government says the deals are not binding as they have not been approved by the central government, while the Kurdistan government says they are in line with the constitution.

- Dow Jones Newswires contributed to this report -