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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Japanese refinery put option

Rio de Janeiro, April 1 2010 – Petróleo Brasileiro S.A. - Petrobras announces it received a notice from Sumitomo Corporation today informing about the Japanese company's interest in exercising its put option to sell 12.5% of the capital stock it holds in the Nansei Sekiyu KK Refinery (Nansei) to Petrobras. The remaining portion of Nansei's share capital (87.5%) has been owned by Petrobras since 2008.

Petrobras will analyze Sumitomo's interest based on the terms set forth in the shareholders agreement currently in force.

Sumitomo also informed that its interest to sell its participation is part of the revision of its strategy in the downstream segment.

Nansei has a refinery located in the Japanese province of Okinawa, with capacity to process 100,000 barrels of light oil per day and which produces high-quality products, within the standards in effect in the Japanese market. It also has an oil and oil products terminal with capacity to store 9.6 million barrels, three piers which are able to receive product vessels of up to 97,000 dwt and a monobuoy to load tankers of the Very Large Crude Carrier (VLCC) type of up to 280,000 dwt.

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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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