China National Offshore Oil Company Limited (CNOOC Ltd.) on Wednesday announced first-half net profit rose by 89.3 percent over the same period last year amid high oil prices and rising production.

The net profit was 27.54 billion yuan (4.03 billion US dollars), or 0.62 yuan per share, the oil giant said in its interim report.

CNOOC produced 72.9 million barrels of crude oil in the first half, up 7.1 percent, and 112.5 billion cubic feet of natural gas, up 12.8 percent.

"Soaring crude oil prices in the world market were the major factor contributing to CNOOC Ltd.'s record profits in the first half," said Fu Chengyu, CNOOC chairman and chief executive.

As one of the country's biggest oil explorers and producers, CNOOC Ltd. benefited from record high oil prices in the first half. World crude prices had surged about 70 percent since November.

As a result of the high oil prices, CNOOC Ltd's oil price rose by 74.3 percent year on year to 102.49 US dollars per barrel, and gas price, up 14 percent to 3.66 US dollars per thousand cubic feet.

The company paid 9.75 billion yuan in windfall taxes in the first half, 7.5 billion yuan more than in the same period of last year.

CNOOC said it found six new oil and gas fields in the first half, with three new projects starting production and three oil and gas structures under appraisal.

With more projects going into production, the company would achieve better performance in the latter half, said Fu.

CNOOC Ltd. is the major listed subsidiary of China National Offshore Oil Corporation (CNOOC), China's largest offshore oil producer.

(Xinhua News Agency August 28, 2008)