courtesy Lukoil

Russian oil company OAO Lukoil has posted net income of $7.48 billion for 2006, a 16.2-percent hike on hydrocarbon sales that rose 21.4 percent.

More oil in company oil refineries offset and the resulting better margins were offset by a stronger rouble and a government tax haul that grew by 30 percent.

The company was still paying just $3.08 per barrel to get oil out of the ground, an argument against offshore developments.

Crude oil volumes rose nearly six percent to 703.1 million barrels, and the catch of gas grew by 141 percent to 13.6 million cubic metres chalked up to the Nakhodkinskoye field.

OilGas24 was in Murmansk last week, and saw first hand Russian plans for an oil pipeline to new refining capacity at the Arctic port city.