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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.

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Petrobras exceeds production of 1.9 million barrels of oil per day in Brazil

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(Rio de Janeiro, October 24, 2006). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that on October 23 2006, domestic oil output reached a record production of 1,912,733 barrels. This surpasses by 30,000 barrels the previous record of 1,882 thousand barrels set at the end of May of this year.

This achievement is principally a reflection of the maintenance of production at the onshore fields and the start-up of activities at three new wells interconnected to platform P-50 in the Albacora Leste field in the Campos Basin. With these additional wells, P-50 has already reached a production of approximately 150,000 bopd. The interconnecting of a further four wells to this same platform is nearing completion, at which point over the next few weeks, P-50 should reach its maximum planned production capacity of 180,000 bopd.

For Petrobras, this most recent progress represents one more decisive step towards meeting the target of 2 million bopd forecasted for the end of the year, following the entry into operation of a further two platforms in the Campos Basin: P-34 in the Jubarte field, scheduled for November with a potential of 60,000 bopd and FPSO Cidade do Rio de Janeiro in the Espadarte field in December with a production capacity of up to 100,000 bopd.

http: //www.petrobras.com.br/ri/english

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Contacts:

Petróleo Brasileiro S.A – PETROBRAS Investor Relations Department Raul Adalberto de Campos– Executive Manager E-mail: petroinvest@petrobras.com.br Av. República do Chile, 65 - 22nd floor 20031-912 – Rio de Janeiro, RJ (55-21) 3224-1510 / 9947

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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 oc cur. 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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