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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



FORM 6-K

Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of the
Securities Exchange Act of 1934

For the month of January, 2007

Commission File Number 1-15106



PETRÓLEO BRASILEIRO S.A. - PETROBRAS
(Exact name of registrant as specified in its charter)



Brazilian Petroleum Corporation - PETROBRAS
(Translation of Registrant's name into English)



Avenida República do Chile, 65
20031-912 - Rio de Janeiro, RJ
Federative Republic of Brazil
(Address of principal executive office)

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____


PRESS RELEASE

Petrobras’ Proved Reserves in 2006


(Rio de Janeiro, January 12, 2007). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA], a Brazilian international energy company, announces its proved reserves of oil, condensate and natural gas in Brazil and abroad for 2006, according to the Society of Petroleum Engineers – SPE and Security and Exchange Commission – SEC criteria.

Petrobras' Proved Reserves in Brazil:

On December 31st, 2006 the Proved Reserves of oil, condensate and natural gas in the fields under concession to Petrobras in Brazil amounted to 13.753 billion barrels of oil equivalent (boe) according to ANP/SPE Criteria, representing an increase of 39.9% .

Proved Reserves - SPE 
Volume 
% 
Oil and Condensate (billion bbl) 11.671      85     
Natural Gas (billion m3 ) 331,026      15     
Oil Equivalent (billion boe) 13.753      100     

During 2006, 1.226 billion boe were incorporated into Proved Reserves, with production over the same period amounting to 705 million boe, as shown in the following table:

Proved Reserves Breakdown – SPE Criteria 
Volume (billion boe)
A) Proved Reserves on December, 2005  13.232      
B) Incorporated as Proved Reserves in 2006  1.226      
C) Acumulated Production 2006  0.705      
D) Annual Change (B - C) 0.521      
E) Proved Reserves on December, 2006 (A + D) 13.753      

For each barrel of oil equivalent extracted in 2006, 1.739 boe were incorporated into Proved Reserves, resulting in a Reserve Reposition Index (RRI) of 173.9% . According to SPE criteria, Petrobras' Reserve/Production (R/P) ratio in Brazil was 19.5 years.

The highlights, in terms of Proved Reserve incorporation were:


According to the SEC Criteria, Brazil's Proved Reserves at December 31 2006, amounted to 10.573 billion boe, representing practically the maintenance of the estimates for the previous year (10.578 billion boe).

Proved Reserves – SEC Criteria 
Volume 
% 
Oil and Condensate (billion bbl) 9.002      85     
Natural Gas (billion m3 ) 249.783      15     
Equivalent Oil (billion boe) 10.573      100     

According to these criteria, 700 million boe were incorporated into Proved Reserves during 2006, compared with production of 705 million boe, resulting in a Reserve Reposition Index – RRI of 101.3% . In other words, for each 1 barrel of oil equivalent produced, 0.99 barrel was incorporated into Proved Reserves. Under the same criteria, the country's Reserve/Production (R/P) ratio was 14.9 years.

Proved Reserves Breakdown – SPE Criteria 
Volume (billion boe)
A) Proved Reserves on December, 2005  10.578     
B) Incorporated as Proved Reserves in 2006  0.700     
C) Acumulated Production 2006  0.705     
D) Annual Change (B - C) -0.005     
E) Proved Reserves on December, 2006 (A + D) 10.573     

The main discrepancies between the SEC and the ANP/SPE, are due to the differences between criteria employed (concession term and gas reserves with contracts not declared) and the non-booking to company accounts of projects in the initial stages of production development.

International Proved Reserves:

On December 31st, 2006 Proved Reserves of oil, condensate and natural gas, abroad, according to the SPE criteria, were 1.270 billion boe, representing a decrease of 24.4% .

Proved Reserves – SPE 
Volume 
% 
Oil and Condensate (billion bbl) 0.657      52     
Natural Gas (billion m3 ) 104.168      48     
Equivalent Oil (billion boe) 1.270      100     

During 2006, the appropriation of proved reserves was supplemented by the period’s production, added to the contractual revisions that were made, preponderantly in Venezuela. Therefore reserves were reduced by 411 million boe, as shown below:

Proved Reserves – SPE Criteria 
Volume (billion boe)
A) Proved Reserves on December, 2005  1.681     
B) Incorporated as Proved Reserves in 2006  (0.322)     
C) Acumulated Production 2006  0.089     
D) Annual Change (B - C) (0.411)     
E) Proved Reserves on December, 2006 (A + D) 1.270     

According to SPE criteria, international Reserve/Production (R/P) ratio was 14.3 years.

The oil, condensate and natural gas proved reserves, based on SEC Criteria, as at December 31st, 2006, were 885 million boe. This volume represents a reduction of approximately 26.1% compared to the preceding year (1.197 billion boe).


Proved Reserves – SPE 
Volume 
% 
Oil and Condensate (billion bbl)
0.482     
54     
Natural Gas (billion m3 )
68.425     
46     
Equivalent Oil (billion boe)
0.885     
100     

During 2006, the appropriation of proved reserves was supplemented by the period’s production, added to the contractual revisions that were made, preponderantly in Venezuela. Therefore reserves were reduced by 312 million boe, as shown below:

Proved Reserves Breakdown – SPE Criteria 
Volume (billion boe)
A) Proved Reserves on December, 2005  1.197     
B) Incorporated as Proved Reserves in 2006  (0.225)     
C) Acumulated Production 2006  0.087     
D) Annual Change (B - C) (0.312)     
E) Proved Reserves on December, 2006 (A + D) 0.885     

Using the same criterion, the Reserve/Production (R/P) ratio is 10.2 years.

The main reasons for the difference between SPE and SEC criteria are:

Petrobras’ Proved Reserves in 2006 (Brazil and International):

On December 31st, 2006 Petrobras' Proved Reserves of oil, condensate and natural gas amounted to 15.023 billion de boe, a 0.74% increase compared to last year, as per the SPE criteria, distributed as shown:

Proved Reserves – SPE 
Volume (billion boe)
% 
Brasil  13.753      92     
International  1.270      8     
Total  15.023      100     

According to the SPE Criteria, 904 million boe were incorporated into Proved Reserves in 2006 and 794 million boe were produced, resulting in an increase of 110 million boe in relation to 2005 proved reserves (14.913 billion boe). Consequently, for each barrel of oil equivalent produced during 2006, 1.139 barrels were incorporated into Proved Reserves, resulting in a Reserve Replacement Index – RRI of 113.9% . The Reserves/Production ratio (R/P) was 18.9 years.

Proved Reserves Breakdown – SPE 
Volume (billion boe)
A) Proved Reserves on December, 2005  14.913     
B) Incorporated as Proved Reserves in 2006  0.904     
C) Acumulated Production 2006  0.794     
D) Annual Change (B - C) 0.110     
E) Proved Reserves on December, 2006 (A + D) 15.023     


Proved reserves on December 31st, 2006 according to the SEC criteria amounted to 11.458 boe, distributed as follows:

Proved Reserves – SPE 
Volume (billion boe)
% 
Brasil  10.573      92     
International  0.885      8     
Total  11.458      100     

According to the SEC Criteria, Proved Reserves decreased by 2.7% in 2006 compared with the previous year.

Proved Reserves Breakdown – SPE 
Volume (billion boe)
A) Proved Reserves on December, 2005  11.775     
B) Incorporated as Proved Reserves in 2006  0.475     
C) Acumulated Production 2006  0.792     
D) Annual Change (B - C) (0.317)     
E) Proved Reserves on December, 2006 (A + D) 11.458     

According to the same criteria, 475 million boe were incorporated into Proved Reserves during 2006, compared with production of 792 million boe, resulting in a decrease of 317 million boe in relation to 2005 proved reserves (11.775 billion boe). This corresponds to a Reserve Replacement Index – RRI of 60.0% or, in other words, for each barrel of oil equivalent produced, 0.6 barrel was incorporated into Proved Reserves. The Reserves/Production ratio (R/P) was 14.5 years.

Petrobras clarifies that the hydrocarbon reserve properties belong to their respective National States.

Almir Guilherme Barbassa
Diretor Financeiro e de Relações com Investidores

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


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


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.


 

SIGNATURE
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: January 12, 2007

 
PETRÓLEO BRASILEIRO S.A--PETROBRAS
By:
/S/  Almir Guilherme Barbassa

 
Almir Guilherme Barbassa
Chief Financial Officer and Investor Relations Officer
 

 

 
FORWARD-LOOKING STATEMENTS

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.