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Rains damage pipelines in Bolivia

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(Rio de Janeiro, April 4, 2006, 2006). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA], a Brazilian international energy company, announces that intense rainfall in the Chaco region of Bolívia has damaged a stretch of the oil pipeline operated by Petrobras Bolívia that transports condensate produced in the San Antonio and Margarita fields – the latter of which operated by another company – to the trunk pipeline system that transports liquids in Bolívia, imposing restrictions on the production of natural gas from those fields.

As a conseqüence of this rainfall, pipelines operated by other companies that deliver gas and oil products to cities in the region, as well as the local utility’s water main, have also been damaged, imposing restrictions on the delivery of fresh water to the city of Villamontes.

The force of the waterpower unearthed several sections of the pipeline causing damage to an 800 meter stretch.

Several actions, such as the redirection of production, and the adaptation of thermopower plant usage are being implemented to minimize the effects of the accident both in Brazil and Bolívia.

Petrobras Bolívia hás informed Bolivian authorities of the incident, and the actions that have been taken, and continues its efforts to restore as quickly as possible the operational capacity of the damaged pipeline.

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 - 22^nd 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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