Russia's biggest oil producer, OAO Lukoil, said Wednesday its net profit rose 65 percent in the second quarter of 2006 due to high world oil prices, rising output and better cost management.

The company said in a statement that net profit increased to $2.32 billion in the period from $1.41 billion, calculated under Generally Accepted Accounting Principles, or GAAP. The figures beat analysts' forecast of $2.17 billion, according to a poll by Dow Jones Newswires.

"The rise in net profit is due to favorable world prices, an increase in the volumes of extraction and refining and effective cost control as well as growth in refining margins," the company said in its statement.

Total revenues rose 35 percent to $18.38 billion from $13.63 billion.

The company said the average price of Russian Urals crude in Mediterranean markets was about $65 per barrel in the second quarter _ 36 percent higher than the same period last year, when the price was $48.

Production rose 6.8 percent to 1.92 million barrels per day in the second quarter, from 1.8 million in the same period in 2005.

At a presentation in New York, the company rolled out its 10-year strategy, which envisages investments of up to $112 billion, including acquisitions, to more than double its oil output to 4 million barrels per day.

The company noted that the ruble's strengthening against the dollar had held back profits, as had a growing tax burden: the company said its taxes in the first half of the year rose by 40.2 percent to $11.3 billion.

Houston-based oil company ConocoPhillips owns an 18 percent stake in the company.