Iraq's Kurdish government says it has agreed to increase oil exports from its self-rule territory to 250,000 barrels a day next year in a sign that relations with Baghdad are improving following a standoff over disputed oil payments.

The regional Kurdish government says the higher production target depends on Baghdad's willingness to continue paying oil contractors for work done in the Kurdish north. Its statement was posted online late Sunday following meetings in Baghdad.

The Kurds currently produce about 140,000 barrels a day. They said last month they aim to pump 200,000 barrels daily by year's end.

The regional government halted exports in April over a payment dispute with Baghdad, but restarted shipments in August. Iraq's central government does not approve of oil deals signed unilaterally by the Kurds.