At Parente's trade fair, Petrobras will exit the fertilizer sector.

Reuters Petrobras has initiated the process for the sale of its wholly-owned subsidiary Araucária Nitrogenados (Ansa) and the Fertilizer Unit-III (UFN-III), in another move within its divestment and partnership plan aimed at reducing debt.

In a statement released on Monday, Petrobras said the units will be sold together and that the process will follow a system approved by the Federal Audit Court (TCU) for its divestments.

"This initiative is part of the strategy to fully exit fertilizer production, as disclosed in the 2017-2021 Business and Management Plan," the company said in a statement.

The UFN-III plant in Três Lagoas had its construction started in September 2011, but work was halted in December 2015, with a physical progress of approximately 80 percent. The UFN is expected to produce ammonia and urea.

"With the transfer of the asset to the future buyer, work to complete the project can resume," Petrobras said in a statement.

Araucária Nitrogenados, inaugurated in 1982, produces ammonia and urea for use in the chemical and fertilizer industries, as well as the chemical product "Arla 32" and CO2.

Petrobras aims to carry out $21 billion in partnerships and divestments in the 2017/2018 biennium, which will include the state-owned company's exit from some sectors not associated with its core business, such as fertilizer production.

The asset sales and partnerships aim to reduce the company's enormous debt and focus its investments on more profitable businesses, such as oil production in the productive pre-salt fields.

By Luciano Costa