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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Discontinuance of Differentiated Level 2 Corporate Governance
Practices by Suzano Petroquímica

(Rio de Janeiro, June 3, 2008). – PETRÓLEO BRASILEIRO S.A. - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, and UNIPAR – União de Indústrias Petroquímicas S.A. [Bovespa: UNIP3/UNIP5/UNIP6], with reference to Suzano Petroquímica S.A. (“Suzano”), announce:

PETROBRAS and UNIPAR will begin regulatory and contractual procedures aiming at having Suzano discontinue the exercise of Differentiated Level 2 Corporate Governance Practices, as defined in Bovespa’s Regulation. The procedures will begin on June 25 2008, the date that has been scheduled for the financial liquidation of the Public Offer Auction for the Acquisition of Suzano Petroquímica S.A. stock, according to the Public Offer Notice published on May 12 2008 and to the errata published on May 13 2008,

The Discontinuity of the Differentiated Level 2 Corporate Governance Practices will neither cause the cancellation of Suzano’s registration as a publicly traded corporation at the Brazilian Securities Exchange Commission (Comissão de Valores Mobiliários – CVM) nor the shares issued by Suzano to stop being traded at the Brazilian Stock Exchange – Bovespa.

 

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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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