Norway’s Equinor ASA and France’s TotalEnergies SE have agreed to sell their stakes in Venezuela’s onshore Petrocedeno project to a unit of state oil firm PDVSA, which will become the sole owner, Equinor said on July 29.

TotalEnergies separately confirmed the transaction and said it would mean a loss of $1.38 billion for the French company.

Prior to the sale, TotalEnergies held a 30.33% stake in Petrocedeno while Equinor owned 9.67% and PDVSA the remaining 60%.

“The Petrocedeno project aims to upgrade extra-heavy crude oil into lighter crude from the Orinoco Belt area,” Equinor said in a statement.

“The transaction supports Equinor’s corporate strategy to focus its portfolio on international core areas and prioritized geographies where Equinor can leverage its competitive advantages,” it said.

Equinor was not immediately available for additional comment.