UPDATE 1-Iraq has cut 180,000 bpd as part of OPEC oil deal - minister

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By Ahmad Ghaddar

LONDON, Jan 23 (Reuters) - Iraq has reduced its oilproduction by around 180,000 barrels per day and plans to cut afurther 30,000 bpd before the end of the month, the OPECmember's oil minister said on Monday.

The cut came from a 4.75 million bpd level, Jabar Alial-Luaibi told reporters at an industry event at Chatham Housein London.

"We are abiding by OPEC policy and the OPEC agreement,"Luaibi said.

Iraq agreed to lower its production by 210,000 bpd under adeal struck in December between the Organization of thePetroleum Exporting Countries and other producers led by Russia.

The Middle Eastern country, OPEC's second-largest producer,had originally sought to be exempt from any cuts, saying itneeded the revenue to fight an Islamic State insurgency.

"We are cutting from all Iraq," Luaibi said, although headded that cuts to production started at fields operated bynational oil companies.

He said the ministry had contacted international oilcompanies operating in the country about the cuts and so farreceived a "good response" from most of them.

He said Russia's Lukoil, which operates the WestQurna-2 oilfield, told him recently that the company wasprepared to lower output by 20,000 bpd without compensation.

"BP as well and some other companies are responding," headded.

"So far everything is moving smoothly as far as the oilcompanies are concerned."

(Reporting by Ahmad Ghaddar; Editing by Dale Hudson)