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____

Statement by Petrobras Bolívia Refinación (PBR)

(Rio de Janeiro, May 10, 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 its subsidiary, Petrobras Bolívia Refinación (PBR) released the following statement to the local press:

“The company wishes to give notice that, to become effective, the appointment of directors and trustees from Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) to Petrobras Bolívia Refinación (PBR) must comply with, a series of legal and corporate procedures and formalities pursuant to the National Constitution and the laws of the Republic.

These procedures consist principally of the negotiation between the parties of the consideration due from YPFB to Petrobras for the exchange of 50% plus 1 of PBR’s shares; the promulgation of a special law authorizing the participation of YPFB as a shareholder of PBR; the formalization of the transfer of a block of 50% of the shares plus 1 to YPFB; amending the corporate bylaws; the convening of a Shareholders’ Meeting; among others.

More important still, it will be necessary to amend Article 8 of Privatization Law 1330, which prohibits state-owned companies from acquiring assets, values and other rights from companies transferred to the private sector under this legislation.

This, and other issues, will be discussed tomorrow at a meeting to be held in La Paz at which the Minister of Hydrocarbons, Andrés Soliz Rada, the President of YPFB, Julio Alvarado, the Brazilian Minister of Mines and Energy, Silas Rondeau and the President of Petrobras, José Sergio Gabrielli de Azevedo will be present.”

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

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

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.