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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Press Release
August 18 2009

Petrobras’ oil production in Brazil up 3.8% in July

Petrobras’ average oil and gas production in Brazil, in July, topped out at 2,254,409 barrels of oil equivalent per day (boed), 2.7% more than a year ago (2,195,855 boed). The exclusive domestic field oil production, 1,937,583 barrels per day, was 3,8% higher than July 2008.

July’s 11,000-barrel-per-day higher average volume was the outcome of production going back on line after scheduled shutdowns and of increased production at wells that are interconnected to the P-35 platform, in the Marlim field, and to the P-53 platform, in the Marlim Leste field, both in the Campos Basin.

Considering the fields in Brazil and abroad, the Company’s total oil and natural gas production averaged 2,498,116 barrels of oil equivalent (boe) per day, a 3.2% spike compared to July 2008.

The volume of oil and natural gas coming from countries where Petrobras has operations reached 243,707 barrels of oil equivalent per day (boed), 8.5% more than a year earlier on account of production going on stream in the Nigerian fields of Agbami and Akpo.

Natural gas production in the domestic fields was 50.371 million cubic meters per day, the same as in July 2008.

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The chart shows the July production, per state and country.

PETROBRAS’ OIL & NATURAL GAS PRODUCTION
JULY 2009 PER STATE AND PER COUNTRY

STATE/		OIL PRODUCTION						GAS PRODUCTION						OIL/GAS in barrel
COUNTRY		barrels/day						thousand cubic meters/day						equivalent/day (boe)
														TOTAL-
		ONSHORE		OFFSHORE		TOTAL		ONSHORE		OFFSHORE		TOTAL		BOE/DAY
Rio de Janeiro		---		1,629,706		1,629,706		---		27,099		27,099		1,800,153
Amazonas		52,638		---		52,638		9,736		---		9,736		113,874
Espírito Santo		14,090		62,644		76,734		328		1,105		1,433		85,748
Bahia		45,011		145		45,156		2,825		2,154		4,980		76,478
R.G.Norte		54,115		10,960		65,074		790		933		1,723		75,914
Sergipe		39,094		8,324		47,419		260		2,364		2,624		63,924
Alagoas		7,442		263		7,705		1,642		332		1,974		20,119
Ceará		2,212		6,356		8,568		2		110		112		9,272
Paraná (schist)		3,867				3,867		133				133		4,706
São Paulo		---		720		720		---		556		556		4,220
Total Brazil		218,469		1,719,118		1,937,587		15,717		34,654		50,371		2,254,409
Angola		---		2,560		2,560		---		---		---		2,560
Argentina		49,950		---		49,950		8,955		---		8,955		102,655
Bolivia		7,835		---		7,835		7,256		---		7,256		50,542
Colombia		10,639		---		10,639		24		---		24		10,783
Ecuador		2,989		---		2,989		---		---		---		2,989
United States		---		2,379		2,379		---		437		437		4,949
Nigeria		---		44,957		44,957		---		---		---		44,957
Peru		13,036		---		13,036		365		---		365		15,184
Venezuela		8,125		---		8,125		164		---		164		9,088
Total abroad		92,574		49,896		142,470		16,764		437		17,200		243,707
Total Petrobras		311,043		1,769,014		2,080,057		32,481		35,091		67,571		2,498,116

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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 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.

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