CHINA'S largest offshore oil producer by output said today that its net profit jumped 22 percent in 2006, boosted by rising oil prices and production volume.

CNOOC said its revenues in 2006 reached 88.9 billion yuan (US$11.5 billion) as production surged 7.9 percent to 167 million barrels of oil equivalent, according to The Associated Press.

"Our excellent financial performance evidenced the company's effective cost management, higher production volume and the high level of international oil prices," Yang Hua, CNOOC's chief financial officer, said in a statement.

The offshore oil and gas producer's net profit of 30.9 billion yuan compared with a net profit of 25.3 billion yuan in 2005.

The company said it reported 10 oil and gas discoveries in 2006, including its first deepwater discovery. Seven of its new projects launched production, although typhoon damage limited gains in output.

"While our production growth for the year might be flat, we are actually building a mighty force and creating conditions to accelerate our growth for the next phase," CNOOC's chairman, Fu Chengyu, said in a statement to shareholders.