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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Capital Expenditures in 2008

(Rio de Janeiro, February 11, 2009). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces record capital expenditures of R$ 53.4 billion during 2008, a year-on-year increase of 18%.

Petrobras continues to allocate the larger part of its investments in Exploration and Production (26% increase in 2008), focusing on the development of oil and natural gas production in Brazil. Investments in Gas and Energy posted the greatest variation, increasing by 50% compared with 2007, mainly due to the expansion of the gas pipeline network for production outflow. Downstream investment increased 14% due to projects for improving fuel quality and processing of heavy crude.

R$ million
		Fiscal Year
		2008		%		2007		%		Δ %
• Own Investments		53,349		100		45,285		100		18
Exploration & Production		26,196		49		20,812		46		26
Downstream		11,999		22		10,537		23		14
Gas and Energy		7,222		14		4,817		10		50
International		6,133		12		6,574		15		(7)
Distribution		558		1		1,670		4		(67)
Corporate		1,241		2		875		2		42
Total Investments		53,349		100		45,285		100		18

R$ million
		Fiscal Year
		2008		%		2007		%		%
International
Exploration & Production		5,252		86		5,759		88		(9)
Downstream		448		7		451		7		(1)
Gas and Energy		250		4		161		2		55
Distribution		41		1		72		1		(43)
Others		142		2		131		2		8
Total Investments		6,133		100		6,574		100		(7)

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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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