Oman's oil output rose about 3.6 percent to an average of 739,000 barrels per day in the first five months of 2008 from a year ago, an oil official said on Tuesday, although exports fell due to rising domestic demand.

Oman's nominal gross domestic product grew by 12.9 percent in 2007, fuelled by record oil export revenues.

Rapid economic growth is feeding rising demand for energy, which curbed oil exports by 5.1 percent compared to the first five months of 2007, official data showed.

"The increase in oil production is attributed to new smaller fields discovered before the end of 2007," the ministry of oil and gas official told Reuters.

The Gulf Arab state sold its oil at an average price of $90.03 per barrel in the period of January to May, 54.3 percent more than in 2007.

Petroleum Development Oman produces 90 percent of the country's total oil output but the company's production has been steadily declining in the last five years due to ageing fields. - Reuters