Oman said on Saturday it had made a budget surplus of RO434.3 million ($1.13 billion) in 2007, wiping out a projected deficit of RO400 million, thanks to windfall oil revenues.

Net oil earnings rose by 12.5 per cent to 3.63 billion rials last year while gas income increased 32 per cent to RO811 million, according to the economy ministry's monthly report.

Oman spent RO5.4 billion in 2007, about nine per cent more than a year earlier, mainly on projects and infrastructure, the report added. The sultanate's income depends heavily on oil and gas revenues which comprise 80 per cent of its total earnings.

It had estimated in its 2007 budget oil prices of around $40 per barrel. Actual oil prices averaged at $65 per barrel during the year.-Reuters