Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F. 

Form 20-F ___X___ Form 40-F _______

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes _______ No___X____

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New light oil discovery in the Santos Basin

(Rio de Janeiro, September 5, 2007). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that the consortium formed by Petrobras (45% - Operator), British Gas - BG (30%), and REPSOL YPF Brasil (25%) has discovered 27º API oil at exploratory well 1-BRSA-491-SPS (1-SPS-50), located at a depth of 2,140 m, 273 km off the coast, in the Santos Basin in Block BM-S-9, (Figure below).

This new positive result reaffirms the historic moment oil exploration is going through in Brazil, particularly in this deep water area in the Santos Basin.

The formation test performed in the vertical well suggests the production of 2,900 barrels of oil and 57,000 cubic meters of gas per day, with flow limited by the test's operating facility and safety restrictions. Formation test assessments and new geological studies are now being undertaken to prove whether or not the reservoirs that have been found have good productivity characteristics and economically viable volumes under such geographical conditions.

New investments will be made, including in drilling new wells and developing new technologies that will lead to progress in Santos Basin deep waters. To do so, in compliance with the regulatory agency’s norms, the Consortium must submit an Assessment Plan for this discovery’s area to the NPA indicating the deadline for future investments in Exploration.

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   www.petrobras.com.br/ri/english
Contacts: PETRÓLEO BRASILEIRO S. A. – PETROBRAS
Investor Relations Department I E-mail: petroinvest@petrobras.com.br
Av. República do Chile, 65 – 22^nd floor - 20031-912 - Rio de Janeiro, RJ I Tel.: 55 (21) 3224-1510 / 9947

This document may contain forecasts that merely reflect the expectations of the Company’s management. Such terms as “anticipate”, “believe”, “expect”, “forecast”, “intend”, “plan”, “project”, “seek”, “should”, along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein.

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This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

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