MADRID, May 8 (Reuters) - Spain's second-largest oil

company Cepsa said on Wednesday it reached an agreement with

Canada's PetroTal Corp ( PTALF ) to sell its upstream assets in Peru for

an undisclosed amount.

The sale is in line with the company's strategic shift

toward low carbon businesses and follows recent divestments of

upstream assets in Colombia and Abu Dhabi.

Owned by Abu Dhabi fund Mubadala and the Carlyle Group,

Cepsa is investing up to 8 billion euros ($8.58 billion) through

2030 in green hydrogen and biofuels.

"This transaction supports our transformation as a company

and our strategy to make Cepsa a benchmark in the energy

transition by the end of this decade, when we expect more than

half of our business to come from sustainable energies such as

green hydrogen and biofuels," Chief Executive Maarten Wetselaar

said.

The deal is subject to regulatory approvals.