UPDATE 1-No deal on Kurdish contracts-Iraq oil min official

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BAGHDAD, April 16 (Reuters) - Iraq's central government has not reached a deal with the Kurdish regional authorities to recognise contracts the Kurds signed with foreign oil companies, a senior Iraqi Oil Ministry official said on Wednesday.

"The Iraqi Oil Ministry considers the contracts signed by the Kurdish regional authorities as illegal and void," the senior official said, adding he was "astonished" by reports that suggested otherwise.

Unconfirmed media reports that Baghdad had agreed to accept the contracts signed by the Kurds had caused share prices in Norwegian oil firm DNO (DNO.OL: Quote, Profile, Research) to soar earlier on Wednesday. The firm has signed such contracts with the Kurdish authorities.

The official said the Kurdish contracts are the main stumbling block to agreeing a draft national oil law that will open up the country's energy sector to foreign investment.

"The main reason for not reaching an agreement on the draft oil law is the Kurdish contracts." (Reporting by Ahmed Rasheed; writing by Peter Graff)