UPDATE 1-Brazil's Petrobras, government agree on rules for potential Sepia, Atapu sale

(Adds information on value of compensation)

RIO DE JANEIRO, April 9 (Reuters) - The board of Brazilian state-run oil company Petrobras has approved an agreement with the government regarding the compensation that must be paid to Petrobras in the event of an auction of reserves in two offshore oil areas, the firm said on Friday.

Petroleo Brasileiro SA, as the company is formally known, will receive $3.253 billion if reserves from the Atapu field are auctioned off, and $3.2 billion if reserves from Sepia are sold off. The payments would be made over the course of roughly a decade.

The government tried and failed to auction off reserves in the Atapu and Sepia offshore oil blocks in 2019, though officials are keen to try again. As Petrobras has already done exploration and development work in those regions, the company is eligible for compensation.

Reporting by Gram Slattery; Editing by Leslie Adler and Aurora Ellis