China National Petroleum Corp CNPET.UL is close to a deal to buy Petróleo Brasileiro's (PETR4.SA) assets in Peru for more than $2 billion, Bloomberg reported, citing three people with knowledge of the matter.
China's largest oil and gas company's proposed deal may be announced as soon as next month, the report said.
Petrobras, as the Rio de Janeiro-based company is known, has been looking to shed non-core assets and protect cash.
The sale of oil fields, exploration rights, refineries and other assets are being made to help finance a $237 billion, five-year investment plan, the world's largest corporate spending program.
However, selling assets has been harder than expected. In March, Brazilian state-controlled Petrobras lowered its forecast for the value of asset sales by nearly 40 percent to $9 billion from $14.8 billion.
Petrobras and CNPC could not immediately be reached for comment by Reuters.
(Reporting by Sakthi Prasad in Bangalore; Additional reporting by Jeb Blount in Sao Paulo and Judy Hua in Beijing; Editing by Gopakumar Warrier)