By Rogerio Jelmayer

SAO PAULO--Brazilian state-run oil company Petrobras on Thursday agreed to sell its cooking-gas distributor, known as Liquigas, to local fuel and petrochemical holding company Ultrapar Participacoes SA, in a deal worth 2.8 billion reais ($819 million).

The sale still must be approved by Brazil's government antitrust agency CADE.

The operation is part of Petrobras plan to sell certain assets to reduce debt. The company is planning to sell a total of $15.1 billion in assets by the end of this year, and $19.5 billion in assets in 2017 and 2018.

With the ambitious asset-sale plans, Petrobras said it seeks to reduce its net debt-to-ebitda ratio to 2.5 times in 2018. It was 5.3 times at the end of 2015. Petrobras ended the third quarter with a total debt of $122.65 billion.

Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com

(END) Dow Jones Newswires

November 17, 2016 17:07 ET (22:07 GMT)

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