Iraq 's Deputy Prime Minister for Energy Hussein al-Sharhistani Monday lashed out at Iraq 's Kurdistan authorities for halting crude oil exports, accusing them of allowing instead billion of dollars worth of oil smuggling over the borders mainly to Iran .

The new charges would further escalate an impasse between Baghdad and semi-autonomous region of Kurdistan in northern Iraq . The Kurdistan Regional Government is embroiled in a long dispute with Iraq 's central government over the rights to control the oil resources in the region. The dispute has periodically caused the disruption of oil exports from the Kurdish region.

The KRG decided Sunday to halt completely oil exports from the region of around 90,000 to 100,000 barrels a day, accusing the central government in Baghdad of failing to make payments to firms working there.

The KRG produced from its oil fields some 68.10 million barrels of oil in 2011, but only 33.64 million barrels were received and exported via the central government's oil marketing arm, the State Oil Marketing Organization, or SOMO, Shahristani told a news conference in Baghdad .

Crude oil produced in Kurdistan and not exported via the central government's marketing company in 2010 and 2011 was worth up to $6.65 billion, Shahristani told reporters in Baghdad .

"Most of these barrels not received but produced by Kurdistan ...are being smuggled outside Iraq via the Iranian borders," he said, adding: "This will cause a budget deficit, and our government should act to preserve Iraqi resources."

The federal Oil minister Abdul Kareem Luaiby, meantime, said that his government has detailed evidence that the Kurdish oil is being smuggled to Iran , Afghanistan and Pakistan and being sold there at lower prices.

Kurdish government officials weren't immediately available to comment.

A Middle East shipping agent and Iraqi oil officials confirmed that the Kurds have halted exports. Iraq 's crude exports from northern oil fields dropped to 300,000 barrels a day Sunday, from 370,000 to 400,000 barrels a day, a day after the autonomous region in Kurdistan decided to halt exports from their oil fields, the shipping agent said.

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