"We have decided to suspend all DNO's operations and its involvement in the Kurdistan region with immediate effect," Kurdistan's natural resources minister Ashti Hawrami wrote in a letter to DNO disclosed by the company late Monday.

Hawrami said Norwegian media reports hinting at corruption within the Kurdistan regional government had caused "unjustifiable and incalculable harm" to its reputation.

"All (DNO) oil exports will cease and DNO shall not be entitled to any economic interest in the PSCs (production sharing contracts) during the suspension period" of up to six weeks, he said.

At the origin is a conflict between DNO and the Oslo stock exchange.

The exchange recently fined DNO 1.1 million kroner (127,000 euros, 188,000 dollars) for failing to inform it adequately of a financial transaction.

In October 2008, DNO sold 4.8 percent of its shares for 175.5 million kroner to an unidentified investor.

But according to the exchange, DNO knowingly sold them to Hawrami.

The DNO share price then rose sharply after Hawrami announced that following a long dispute between Baghdad and Kurdistan authorities, DNO would finally be authorised to begin exporting oil from its Tawke field in June.

Hawrami sold the shares this year to Turkey's Genel Enerji.

According to Norwegian financial daily Dagens Naeringsliv, either the Kurdistan government or Hawrami allegedly pocketed a capital gain of 100 million kroner on the deal.

The Kurdistan government insists it was merely an intermediary between DNO and Genel Enerji and did not benefit from the transaction.

Kurdistan officials were not available for comment on Tuesday.

"If DNO fails to remedy the damages caused and fails to remove any other claims the Kurdistan regional government may consider termination of DNO's involvement in the Kurdistan region with or without compensation," Hawrami said.

DNO's Tawke field produces some 50,000 barrels of oil per day.

The company has asked the Oslo exchange to suspend trading in its share through Wednesday to "determine what the Kurdish government means when it says it wants its reputation restored," exchange spokesman Per Eikrem told AFP.

A DNO spokesman said meanwhile the company was trying to resolve the issue with Kurdistan authorities through dialogue.

"DNO is now considering initiating legal actions against the Oslo stock exchange for damages as a result of willful breach of confidentiality," it said in a statement.