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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Clarification on capitalization and drilling in Tupi

Rio de Janeiro, April 13, 2010 - Petróleo Brasileiro S.A. – Petrobras, concerning news published by the Brazilian press over the past few days, clarifies that it is working with the expectation that the Bills sent to the National Congress will be approved, and that the capitalization with the Transfer of Rights will take place no later than at the end of July of this year and that the Company is not considering the possibility of a capitalization though the issue of preferred stock (PN) only or other structures of equity issue.

In accordance with the clarification released on March 24, 2010, the Company is considering the execution of the Capitalization to finance part of the investments of the Business Plan foreseen for the 2010 – 2014 period of US$ 200 billion to US$ 220 billion, without jeopardizing the maximum net leverage level of 35% and the Net Debt/EBITDA ratio limited at 2.5

Regarding the news about the drilling of 16 wells in the Tupi area before the declaration of commerciality, the Company informs that this number refers to Block BM-S-11 which includes Tupi and Iara areas. The Company has already completed 6 wells in Tupi (1-RJS-628, 3-RJS-646, 4-RJS-647, 3-RJS-662, 9-RJS-660 and 3-RJS-666) and one in Iara (1-RJS-656). It is already expected the drilling of an additional well in Iara and 7 exploratory wells and one production well in Tupi, totaling 16 wells.

 

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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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