(Updates with confirmation via a source, context)
RIO DE JANEIRO, Aug 8 (Reuters) - Brazil's state-controlled oil company Petroleo Brasileiro SA has delayed until next week the delivery of binding proposals for its liquefied petroleum gas (LPG) distribution unit Liquigas, a source with direct knowledge of the matter told Reuters.
Petrobras, as the firm is known, decided to delay the offers after interested parties asked for more time to conduct due diligence on the unit, said the source, who requested anonymity as the matter is private.
Liquigas is one of dozens of assets Petrobras has put up for sale in a massive divestment drive aimed at reducing debt and sharpening the company's focus on deepwater oil exploration and production.
Petrobras has already signed deals for about $12.8 billion of divestments this year.
This week, Reuters reported that groups led by Brazilian investment firm Itausa Investimentos SA, Abu Dhabi state investor Mubadala and SHV Energy of the Netherlands were expected to submit binding proposals for the unit.
Liquigas is expected to fetch between 2.5 billion and 3 billion reais ($757 million), Reuters reported.
Newspaper Valor Economico first reported on the delay. The newspaper, citing people familiar with the matter, said the new date for bids was Aug. 16.
Petrobras did not immediately respond to a request for comment.
($1 = 3.97 reais) (Reporting by Rodrigo Viga Gaier; Additional reporting by Tatiana Bautzer in Sao Paulo; Writing by Gram Slattery; Editing by Bernadette Baum and David Gregorio)