(Adds OPEC background, gas exports figures)
By Maher Chmaytelli
BAGHDAD, Aug 23 (Reuters) - Iraq on Tuesday asked foreignoil companies to increase oil output and exports, as Baghdadjoined those spotlighting production potential ahead of a majorenergy gathering late next month.
Oil Minister Jabar Ali al-Luaibi, who took up his post thismonth, met in Baghdad with oil companies operating in Iraq.
"The minister reaffirmed support for the operations ofinternational companies in order to increase the production andexport rates of crude oil and natural gas," ministry spokesmanAsim Jihad said.
The meeting aims at "opening a new chapter in cooperation"with the foreign companies, he said.
Iraq is OPEC's second-largest producer after Saudi Arabiaand an increase in its output, alongside that of Iran, couldaggravate the global oil glut and complicate discussions betweenOPEC and non-OPEC producers on output limits to prop up prices.
OPEC members will meet on the sidelines of the InternationalEnergy Forum (IEF), which groups producers and consumers, inAlgeria from Sept. 26-28.
Luaibi on Monday renewed Iraq's demand to review contractswith the companies to cut the fees that they receive when crudeprices fall.
The companies say those fees are already low given theinvestments and challenges required to raise output at ageingfields in the southern region.
Iraq produces about 4.6 million barrels per day (bpd) ofcrude and this year started exporting liquefied petroleum gasand natural gas condensates. Total gas exports so far this yearreached 12,000 metric tons for LPG and more than 100,000 cubicmeters (3.5 million cubic feet) for condensates.
Iraq was in talks with foreign oil companies to link thefees they charge for developing their fields to oil prices andhave them share the burden when markets go down, former oilminister Adel Abdul Mahdi told Reuters in January.
Iraq generates 95 percent of its public budget from oilsales. It has service agreements with companies including CNPC, BP, Shell, Eni, Exxon Mobil and Lukoil, which get paid for the extrabarrels produced at fields awarded to them through a biddingprocess.
Current service agreements with oil companies are strainingIraq's budget as the government pays them a fixed fee forincreasing production at ageing fields. Its own revenue droppedas oil prices have more than halved compared to 2014.
(Reporting by Maher Chmaytelli; editing by Jason Neely andWilliam Hardy)