(Adds revenue generated by oil sales)
By Aref Mohammed and Ahmed Rasheed
BASRA, Iraq, Aug 1 (Reuters) - Iraq's oil exports from itssouthern ports rose to 3.2 million barrels per day (bpd) onaverage in July, up from 3.175 million bpd in June, as the OPECnation increased crude production, Iraqi oil officials said.
Output at the Luhais field, operated by state-run South OilCompany, increased by 10,000 bpd to 90,000 bpd in July,according to a company official.
Fields operated by foreign companies in southern Iraq alsocontributed to the July increase, he said.
The southern region produces most of the OPEC member's crudeoil. The northern Kurdish regional government exports about500,000 bpd through a pipeline to the Turkish port of Ceyhan, onthe Mediterranean, but that is done independent of the centralgovernment in Baghdad which oversees crude sales from the south.
Iraq reaped $3.744 billion from oil exports in July, OilMinistry spokesman Asim Jihad said in a statement. He saidaverage production for the month was over 3.202 million bpd.
Iraqi officials and oil analysts expect further growth inthe country's exports this year, although at a slower rate thanin 2015 when it was the fastest source of OPEC supply growth.
Iraq last year boosted production by more than 500,000 bpd,despite spending cuts by companies working at the southernfields and conflict with Islamic State militants.
This year, Iran has provided the biggest rise in supply fromthe Organization of the Petroleum Exporting Countries as itrecovers from Western sanctions.
The July output increase in Iraq comes despite a pipelineleak that shipping and trade sources said prompted a briefsuspension of loadings at two of the southern terminals. TheIraqi oil ministry said on July 11 the leak was repaired.
(Reporting by Aref Mohammed and Ahmed Rasheed; Writing by MaherChmaytelli; Editing by Tom Hogue and Louise Heavens)