UPDATE 3-OPEC income, future output hit by price drop-Badri

LONDON, Feb 9 - OPEC is willing to cut yet more oil output at a meeting in March to help revive prices, said the secretary-general of the group which has seen bumper revenues vanish and put major oil supply projects on hold.

Oil's $105 plunge has already "lost" the Organization of the Petroleum Exporting Countries $356 billion and forced delays to 35 of 150 oilfield development projects, Abdullah al-Badri told reporters on Monday at a Chatham House energy conference.

"This year our income will be cut by 50 percent," he said. The group that pumps a third of the world's oil earned close to $1 trillion dollars last year, according to the U.S. Energy Information Administration.

OPEC's response to oil's precipitous drop to $40 from near $150 in July has been to agree, in December, to remove 4.2 million barrels per day (bpd) from September output levels.

Badri said early indications are that the Organization of the Petroleum Exporting Countries has delivered on 80 percent of that pact, higher than some estimates. Another 900,000 bpd had to go to ensure perfect compliance, he added.

"Let's fulfil that first ...," said the Secretary-General.

He reiterated comments first made to Reuters at the end of last month that OPEC stood ready to lower production further.

"If we think we still need more action, I'm sure the conference will take more action to stabilise the market," he said, referring to OPEC's policy meeting on March 15 in Vienna.

He dismissed the possibility of a meeting before then.

OPEC's president and oil ministers from member countries Iraq, Venezuela and Iran have also raised the prospect of the group lowering supply further as the global downturn erodes oil demand and pressures prices.

UAE MINISTER

At $40, the price of crude now is about half that required to attract enough investment in new supply, the oil minister for the United Arab Emirates said in his speech at Chatham House.

"It is clear that if oil prices remain low for much longer, the negative investment trend will increase to such an extent that large supply shortages will develop when the present economic woes are over," said Mohammed al-Hamli.

Already OPEC members have delayed 35 of 150 medium-to-long term projects to tap future supplies.

"Some of these have been postponed until after 2013," said OPEC's Secretary-General.

Even "firm plans" by the 12-member group to bring 5 million bpd of new capacity onstream by 2012 could be dogged by some delays, he said.

"The start up dates of many other projects are still expected to slip," added Badri.

Oil has risen to about $40 from levels below $34 touched in December, the lowest in more than four years. OPEC officials say the price is still too low to give them enough income.

The UAE oil minister expressed OPEC's worry that low prices could lead to lower future supplies, potentially causing prices to surge when demand recovers.

But Hamli said he saw no sign yet of an upturn.

"This crisis has rapidly gained global proportions and we do not yet see light at the end of the tunnel," he said.