SHANGHAI, China —  CNOOC Ltd., China's largest offshore oil and gas producer by capacity, said Thursday its 2007 net profit rose just 1.1 percent due to minimal increases in output and a large jump in the windfall tax on oil sales.

Net profit in 2007 rose to 31.26 billion yuan ($4.45 billion) from 30.93 billion yuan the previous year.

Revenues rose 2 percent to 90.7 billion yuan ($13 billion) from 88.95 billion yuan.

The company, which has shares traded in Hong Kong and New York, said its windfall tax on oil sales above $40 a barrel rose to 6.84 billion yuan ($977 million) from 3.98 billion yuan because of higher oil prices last year.

CNOOC said its total output of oil and gas last year rose only 2.6 percent to 171 million barrels of oil equivalent due to the shutdown of the Liuhua oil field after a typhoon, while some bigger fields are not due to begin production until later this year.

The average selling price of CNOOC'S crude oil last year rose 12 percent to $66.26 a barrel, it said.

CNOOC said it aims to produce 195 million-199 million barrels of oil equivalent this year.

It expects its output from offshore China to rise to 171 million-173 million barrels of oil equivalent this year, up from 149 million barrels of oil equivalent in 2007, thanks to a full-year contribution from the Liuhua field and other new startups.

CNOOC's Hong Kong shares rose 1.5 percent Thursday to HK$11.12.

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