Brazilian oil and gas giant Petroleo Brasileiro SA (SAO:PETR3), or Petrobras, said on Friday it is holding talks to sell its 45.9% interest in sugarcane company Guarani SA to a local unit of French agricultural group Tereos.

Petrobras Biocombustivel plans to hire Banco Itau BBA to advise it on the sale of the minority stake to Tereos Internacional SA, Petrobras said in a statement. The move is part of the company’s intention to exit the biofuel production sector, it added.

Guarani is engaged in the production of sugar and ethanol. Tereos already has control of the firm through its 54.1% stake.

Petrobras is discussing this transaction as part of its programme to divest certain assets and cut debt. The company noted it is not certain whether a deal would be signed.