Petróleo Brasileiro SA started the binding phase for the sale of its 93.7% stake in power producer Breitener Energética SA, according to an Aug. 16 news release from the Brazilian state-controlled company.

Qualified parties will receive an invitation letter with instructions on the divestment process, including guidelines for submission of the binding proposals.

Petrobras announced the nonbinding phase in June.

Breitener Energética has two thermoelectric units, UTE Breitener Tambaqui SA and UTE Breitener Jaraqui SA, with a combined installed capacity of 315 MW. The plants are located in Manaus, Amazonas, in Brazil.

The plants have a contracted capacity of 120 MW until 2025 with energy distributor Amazonas Distribuidora de Energia SA through an exclusive power purchase agreement.

Petrobras is currently selling assets to reduce debt and focus on offshore exploration and production. The company said in its second-quarter earnings release that it has sold seven assets for a total of $12.78 billion.