Petróleo Brasileiro SA, or Petrobras, has set the deadline for nonbinding proposals to acquire its liquefied petroleum gas distribution unit Liquigás Distribuidora SA for June 7, Reuters reported May 27, citing a source "with knowledge of the matter."

The sale of Liquigas would follow other divestments that will allow the Brazilian oil giant to reduce debt and shift its focus to offshore exploration and production.

In its recent earnings call, Petrobras reported first-quarter gross debt of $106.0 billion, growing from the $84.36 billion posted in the same quarter last year.

Reuters in April reported that buyout group CVC Capital Partners Ltd. and Brazilian investor Itaúsa - Investimentos Itaú SA were among the potential buyers of Liquigas.