Brazilian state-run oil company Petroleo Brasileiro (Petrobras) has signed an agreement to divest its 67.19% stake in its Argentina subsidiary to Pampa Energia for $892m.

Under the deal, Petrobras will sell its interest in Petrobras Argentina (PESA) held through Petrobras Participaciones (PPSL).

Petrobras Argentina has downstream operations, including refining, petrochemicals and electricity generation.

The divestment is part of the company’s efforts to sell around $14bn worth of assets in 2016 in a bid to reduce debt and maintain cash amid plunging oil prices.

As part of the deal, Petrobras will continue operations in the exploration and production segment in Argentina by acquiring 33.6% of the Rio Neuquen concession, which is estimated to have high natural gas production potential in the Neuquén Basin.

Petrobras will also acquire 100% stake of the Colpa Caranda asset, natural gas producing fields in Bolivia.

Earlier, Petrobras announced its plan to sell its regional natural gas pipeline subsidiary Nova Transportadora do Sudeste (NTS).

As part of this effort, Petrobras’ executive board is negotiating with Canadian asset management firm Brookfield on an exclusive basis for 60 days and may be extended for another 30 days.

Reuters cited three sources as saying that Brookfíeld has offered $5.2bn to purchase the Petrobras’ gas pipeline division, exceeding the proposals from the Spanish company Gas Natural Fenosa, the French Engie and Mitsui.