PetroChina plans to raise its annual crude oil output by 0.3 per cent and its saleable natural gas by 12.3 per cent until 2010, despite falling output at its ageing oil fields. The mainland's largest oil and gas producer was targeting oil output of 107 million tonnes by 2010, against 104.87 million tonnes last year, vice-chairman Jiang Jiemin was quoted in China Oil News. Despite 'the declining quality of newly developed resources [and] the increasing difficulty of development work ... developed oil fields still have potential,' Mr Jiang said. Gas production was projected to rise to at least 600 billion cubic metres by 2010. Given the firm's marketable gas amounts to between 72 and 75 per cent of its production, saleable gas is forecast to reach at least 1.55 trillion cubic feet. Separately, China National Offshore Oil Corp - parent of oil and gas producer CNOOC - has denied reports that it has dropped Royal Dutch/Shell as a potential partner for its US$2 billion oil refinery project in Huizhou, Guangdong.