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____

---

Important light oil accumulation
discovered in shallow Santos Basin waters

(Rio de Janeiro, May 29, 2008). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, as the sole concessionaire of block BM-S-40, located in shallow waters in the southern portion of the Santos Basin, announces that after the drilling of the well 1-BRSA-607-SPS (1-SPS-56) has proved the presence of light oil in reservoirs above the salt-bearing layer. Preliminary analyses indicate the oil’s specific gravity is 36 °API.

This pioneering well is located some 275 Km to the south of the city of Santos, off the coast of the state of São Paulo, 235 meters below the water line (see the Figure below).

The discovery was confirmed by oil production via a lined well formation test in reservoirs located at a depth of nearly 2,080 meters. The test proved the high flows that are expected for the type of reservoir and oil that were found. Potential production, per well, has been estimated at more than 12,000 barrels per day.

Petrobras will continue the exploratory activities at block BM-S-40, as stipulated by the Concession Agreement, by drilling a new exploratory well for the same purpose. Work is slated to begin in June 2008.

This discovery is greatly important due to the light oil production potential and because the field is located in shallow waters in the southern tip of the Santos Basin.

 

 

---

www.petrobras.com.br/ri/english
Contacts: PETRÓLEO BRASILEIRO S. A. – PETROBRAS
Investor Relations Department I E-mail: petroinvest@petrobras.com.br / acionistas@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.

---

 

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.

---