CNOOC Ltd., China's largest offshore oil producer, said Thursday net profit rose 1.1 percent year-on-year in 2007 because of flat output growth and higher tax and cost.

Net profit rose to 31.3 billion yuan, or 0.72 yuan per share, the oil giant said in its annual financial statement. It beat estimate by Credit Suisse, who forecast a 1.3 percent decline in net profit.

Revenue edged up 2 percent to 90.7 billion yuan. Oil and gas sales increased 7.7 percent to 73 billion yuan, driven by high oil prices last year.

CNOOC produced 171 million barrels-of-oil-equivalent (BOE) last year, up 2.6 percent from a year ago.

(Xinhua News Agency March 28, 2008)