PetroChina Co Ltd, the country's largest oil and gas producer, said it will take over the management of parent China National Petroleum's refining and petrochemical assets in Daqing in northeastern China's Heilongjiang province.

The management of Daqing Petroleum and Chemical will be transferred to PetroChina from July 1, PetroChina affiliate Daqing Huake Co Ltd said in a statement.

Daqing Huake said CNPC will still ultimately control Daqing Petroleum and Chemical after the management transfer, clarifying rumors that the assets of Daqing petroleum will be injected into PetroChina.

According to market speculation, the restructuring will pave the way for PetroChina to take over the assets of Daqing Petroleum, part of the downstream operations of Daqing oilfield.

Daqing Petroleum and Chemical has set a sales target of 1.5 billion yuan by end-2010 with profit projected at 50 million yuan, it said.