* Oil production rose nearly 9 pct in Q2
* Total's Q2 net profit jumps 44 pct, beats forecasts
* Dividend up 3.2 percent to 0.64 euros(Adds details, quote, background)
By Bate Felix
PARIS, July 26 (Reuters) - French oil and gas major Totalraised its 2018 savings and oil production targetsafter a new record quarterly output, costs savings, and high oilprices lifted its net profit in the second quarter.
The group said adjusted net profit for the second quartersoared 44 percent to $3.6 billion, beating analysts' estimatesof $3.4 billion.
Oil production rose by 8.7 percent to 2.717 million barrelsof oil equivalent per day, driven by the early completion theMaersk Oil deal, and the ramp-up of several projects includingYamal LNG in Russia and Moho Nord in Congo.
Total raised its production growth target to 7 percent in2018 from 6 percent previously, expecting a boost from thestart-up of its Kaombo North project in Angola, Egina inNigeria, Australia's Ichthys LNG and Tempa Rossa in Italy.
It said cost savings measures were on track to surpass the$4 billion target for the year and reach $4.2 billion over the2014-2018 period.
"Oil prices continued to increase, averaging $74 per barrelin the second quarter, supported by inventory reductions andgeopolitical tensions," Total's Chief Executive Patrick Pouyannesaid in a statement.
The company said it would continue to implement programmesto improve operational efficiency and reduce its breakeven so asto remain profitable, whatever the market context.
Organic pre-dividend breakeven continued to drop to lessthat $25 per barrel in the quarter, it said.
Total also maintained 2018 investments at the $16-$17billion range.
Total said it bought back all shares issued during the yearfor the scrip dividend scheme, and also bought back shares for$600 million to spread the benefits from the higher oil priceswith shareholders.
Total's share buybacks came as its rival Royal Dutch Shellalso launched a long-anticipated $25 billion sharebuyback programme on Thursday.
Total added that it will continue to buy back shares issuedas scrip dividend when prices were down, to eliminate dilution.
Total also raised its dividend in the quarter by 3.2 percentto 0.64 euros ($0.7487) per share.
($1 = 0.8548 euros)(Reporting by Bate Felix;Editing by Sudip Kar-Gupta)
