French oil giant Total on Wednesday proposed a higher-than-expected 14 percent increase in its interim dividend and unveiled plans to expand its research and development programme over the next five years.

The plans, presented in a strategy update, signal that Total will generate enough cash to significantly boost shareholder remuneration as analysts expected the oil group to raise the interim dividend by only 7 percent.

Total also said it planned to spend 5.5 billion euros ($7.79 billion) on research and development until 2013 in a number of areas such as alternative energy.

A spokeswoman for the oil group said it had spent $1 billion on research and development in 2008.

"With its view of the supply-demand balance and other elements that should support the price of oil over the medium term, Total reaffirms its policy of sustained investment oriented toward long-term projects on the main growing segments in the petroleum chain," Total said in a statement.

In a conference later today, Total is expected to reveal more details about its long-term strategy, its expectations about oil prices and production targets. Total shares in Paris were up 0.1 percent at 44.22 euros in early trade. - Reuters