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Tupi Test confirms high level of productivity

Rio de Janeiro, March 23, 2010 – PETRÓLEO BRASILEIRO S/A - PETROBRAS announces that the formation tests of well 3-RJS-662A (3-BRSA-755A-RJS), located in the Tupi Assessment Area, within ultra-deep waters of the Santos Basin, have been completed and confirmed an extremely high level of productivity from the carbonate reservoirs of the pre-salt layer in this area.

The formation tests that were performed measured a flow rate of around 5,000 barrels per day of light oil (about 28^o API), limited by the capacity of the testing equipment. The production potential of this well was estimated at around 30,000 barrels of oil per day, thus providing further evidence of the Tupi area’s high capacity for the production of light oil, which had already been noted from the testing of other wells in the area.

This well, which was the fourth to be drilled in the Tupi area, in 2,115 meters of water deph, back in November 2009, is located within an assessment area in block BM-S-11, some 265 km off the coast of the state of Rio de Janeiro (see figure below) and 18km to the northeast of discovery well 1-RJS-628A (1-BRSA-369A), known as Tupi.

The Consortium, comprising Petrobras (65% - Operator), BG Group (25%) and Galp (10%), will proceed with the activities and investment needed to make a full assessment of the Tupi reservoirs, with the drilling of new wells until the Declaration of Commercial Viability, expected for December 2010.

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This document may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act) 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 forward-looking statements. 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 within the meaning of Section 27A of the Securities Act of 1933, as amended (Securities Act), and Section 21E of the Securities Exchange Act of 1934, as amended (Exchange Act) that are not based on historical facts and are not assurances of future results.  These forward-looking statements are based on management's current view and estimates of future 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 o f 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. 
All forward-looking statements are expressly qualified in their entirety by this cautionary statement, and you should not place reliance on any forward-looking statement contained in this press release. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason.

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