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____

---

Exploitation activities at Uruguay

Rio de Janeiro, February 09 2010 – Petróleo Brasileiro S.A. – Petrobras announces that in partnership with YPF and Galp Energia, it signed an production sharing agreement with Ancap, the Uruguayan national oil company, in Montevideo, today, for oil and natural gas exploration and production on the Uruguayan continental shelf.

The bidding process for the exploration blocks under the Ronda Uruguay 2009 for the Pelotas and Punta del Este Basins was held last July by the Uruguayan government and Petrobras and its partners made the best offer for Blocks 3 and 4.

The blocks are located in the South-Southeastern region of the Punta del Este basin. Block 3 is located 300 km off the coast, at depths ranging from 200 to 1,500 meters, while Block 4 is 150 km off the coast and at a depth of 100 to 200 meters.

Petrobras will be the operator for Block 4 (40%), while YPF will hold equal participating interest, and Galp Energia 20%. In Block 3, Petrobras holds 40% of the interest, YPF will be the operator (40%), and Galp Energia holds the remaining 20% of the rights.

The Company will have four years to analyze the seismic data and decide if it will undertake drilling activities. In the tender, the Company committed to perform the 2D seismic and to complete the reprocessing of existing data.

---

 

---

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

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.

---

 

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.

---