CNPC may acquire Petrobras

China National Petroleum Corp, the country's largest oil producer, is considering buying Petroleo Brasileiro SA assets in South America, three people with knowledge of the matter said.

The assets in Colombia and Peru could be worth about $2 billion and CNPC may face competition from other South American producers, said two of the people, who asked not to be identified because the information is private.

Petrobras, the most indebted publicly traded oil company, has been shedding assets to help finance projects in Brazil's deep waters.

State-run Petrobras sold half of its African assets to Grupo BTG Pactual SA for $1.5 billion last month.