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Iraq's Shahristani says Kurdish oil smuggled, mainly to Iran


    BAGHDAD (Reuters) - Iraq's Deputy Prime Minister for Energy Hussain al-Shahristani said most oil produced in the country's autonomous Iraqi Kurdistan is being smuggled across borders, mainly to Iran, instead of fulfilling its export obligations.

    His charges came after Iraqi Kurdistan on Sunday halted oil exports - which were around 50,000 barrels per day - to protest against the central government's failure to pay oil companies there, the latest clash in its long-running oil dispute with Baghdad.

    "Most of the crude produced in the region is being smuggled through borders and mainly to Iran," Shahristani told reporters. "We have discussed with Iran and Turkey about controlling joint borders to stop smuggling crude."

    Kurdish oil exports are a fraction of the OPEC nation's shipments, but the payment dispute feeds into a wider conflict between Iraqi Arabs and Kurds over autonomy, oil and land that risks upsetting Iraq's fragile sectarian and ethnic balance.

    (Reporting by Ahmed Rasheed; Writing by Patrick Markey; Editing by Erica Billingham)