BAGHDAD An Iraqi oil industry source on Saturday played down a delay in signing a memorandum with the United Nations to extend an "oil-for-food" deal for another five months, saying Baghdad would resume crude oil exports.

"We will be on (exporting oil)," the source said.

"There are some small logistical matters that need to be addressed... but practically there is no problem and we are ready for export," he said.

Iraq's UN Ambassador Mohammed Aldouri said on Friday that Iraq and the United Nations were likely to wait until at least Monday to sign the memorandum.

"It is a natural procedure which has happened in the past... Iraq and the United Nations exchange letters before signing the memorandum," the Iraqi source said when asked why the signing was delayed.

Signing of the memorandum of understanding must be completed to allow Iraq to sell oil despite being under UN sanctions. The UN Security Council on Tuesday approved the five-month extension, to November 30, of the oil sales, Reuters reported.

He said the UN Iraq Sanctions Committee and Baghdad had also to agree on a pricing formula before the start of oil exports.

Iraq's state oil marketing organization and UN officials have talked about the prices but came to no agreement, UN officials said.

Iraq suspended oil exports on June 4 to protest against a U.S.-British proposal to revise sanctions. Tuesday's council vote did not include those proposals, giving a victory to Baghdad.