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For the month of May, 2003

Commission File Number 1-15106

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____

(Rio de Janeiro, May 16, 2003). PETROLEO BRASILEIRO S.A – Petrobras, (BOVESPA: PETR3 / PETR4, NYSE: PBR / PBRA, LATIBEX: XPBR / XPBRA), Brazil’s largest oil and gas, petrochemicals and energy company, informs that the 7-CRL-4D well started its production yesterday with a 10,000 oil barrel-daily outflow, significantly exceeding the initial forecasts. The oil is a light-type and high quality one (41 grades API).

This well is a part of the Development Project for Coral and Estrela do Mar Field, located at 180 km from the seashore, by the coastal region of the State of Paraná, at a 150-meter water depth.

The Project consists of three wells in Coral field and one in Estrela do Mar, interconnected to a semi-submersible platform (Atlantic Zephyr) and a tanker (Avaré), anchored in the oil processing and storage area, to be after transferred to refineries through relieving ships.

The production of the other two Coral wells should be started within the next months. Then, it is expected that the platform production achieves 20 thousand barrels a day.

This Project is being implemented by a consortium formed by Petrobras (the operating company, with a 35% participation), Queiroz Galvão (30%), Coplex (27,5%), and Starfish (7,5%).

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.

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.

PETRÓLEO BRASILEIRO S.A--PETROBRAS

By:	/S/ José Sergio Gabrielli de Azevedo
	José Sergio Gabrielli de Azevedo Chief Financial Officer and Investor Relations Director

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.