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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Funding for the Mexilhão Project

(Rio de Janeiro, December 15, 2008). – 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 related Special Purpose Company (SPC), Companhia Mexilhão do Brasil (CMB), has signed with Brazilian Development Bank (BNDES) a bridge loan in the amount of R$528 million to finance the end of the construction phase of Mexilhão 1 Platform (PMXL-1), that can be refinanced by a long term loan after that.

PMXL-1 will be operated by Petrobras and will be installed in the Mexilhão Field, located in the Santos Basin. The platform will be capable of treating 15 million cubic meters of gas per day and it will be attached to the seabed at a depth of 172 meters from the waterline, at about 145 km off the coast.

The gas produced in Mexilhão will be offloaded via a 34-inch offshore gas pipeline to the “Monteiro Lobato” Gas Treatment Unit (UTGCA) in Caraguatatuba, Northern Coast of the State of São Paulo. Then, it will be transported from the Caraguatatuba-Taubaté Gas Pipeline (Gastau) to the existing pipelines.

The Mexilhão Project will increase the supply of gas to meet part of the Southeastern Region’s demand and will reduce the import needs of natural gas in Brazil. The Mexilhão Project is part of the Gas Production Anticipation Plan (Plangás).

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www.petrobras.com.br/ri/english
Contacts: PETRÓLEO BRASILEIRO S. A. – PETROBRAS
Investor Relations Department I E-mail: petroinvest@petrobras.com.br / acionistas@petrobras.com.br
Av. República do Chile, 65 – 22^nd floor - 20031-912 - Rio de Janeiro, RJ I Tel.: 55 (21) 3224-1510 / 9947

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 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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