The semiautonomous Kurdish government in Iraq said it increased direct oil sales in response to debts stemming from budget cuts imposed by Baghdad.

The Kurdish government said the Turkish sea port of Ceyhan received an average 571,000 barrels of oil per day and an average 150,000 bpd was delivered to the federal State Oil Marketing Co. in June.

The government said it increased direct oil sales because of "significant debt backlog arising from the budget cuts of 2014 imposed by the federal government, and the need to pay down debts accumulated in 2014 from pre-payments for oil sales."

Under the terms of an agreement reached in late 2014, around 250,000 bpd are permissible for exports through Turkey, while another 300,000 bpd will come from the disputed northern province of Kirkuk.

Baghdad under the terms of the deal pays $500 million to the Kurdish government, which places 150,000 barrels of oil produced from its territory per day at the disposal of the federal government in exchange.

With Baghdad tightening its purse strings last year, the Kurdish government said it was relying largely on local and international loans to support spending. A portion of the funding goes to support Iraqi and Kurdish military forces fighting against the terrorist group calling itself the Islamic State, which at times has taken control over parts of Iraq.

The Kurdistan Regional Government said Baghdad is falling short of its commitments on exports and budgetary issues.

"In 2015, the difficult economic situation facing the region has been exacerbated by the partial payments made to the KRG by the federal government," it said in a statement.

A report from risk consultant group Verisk Maplecroft said the Kurdish government, for its part, is balking on sending oil to the State Oil Marketing Co., noting the 2014 agreement is in jeopardy.

"The prospect for a revival in the oil revenue-sharing agreement between Baghdad and Erbil will remain limited for the short term at least," Jordan Perry, principal regional analyst, said in a statement.

Nevertheless, the KRG said it remains committed to national budget laws in their entirety.