How Will Shell (RDS.A) Stock Be Affected By Brazil Legal Requirements?

NEW YORK (TheStreet) -- Royal Dutch Shell (RDS.A)  and Total (TOT) were directed by Brazil's oil regulator to accept Petrobras (PBR) as a partner in their Gato Do Mato offshore oil prospect under new Brazilian law, Reuters reports.

That could strip Shell of operational control of the resource. Magda Chambriard, Brazil's director general of oil regulation, appeared to contradict recent comments made by Brazilian government lawyers.

On Tuesday the lawyers said recent ANP regulations would allow Shell to remain as operator - or lead partner - in the area despite the 2010 law, Reuters said.

Must Read: Warren Buffett's 25 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Shares of Shell are slightly higher in after-hours trading. Total's shares closed slightly higher today.

TOT Chart TOT data by YCharts

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

More from Markets

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Apple and GE Switch Roles; Musk's Super Control of Tesla Explained -- ICYMI

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Trump May Be More to Blame For Higher Oil Prices Than OPEC

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Dow Falls Over 200 Points as Apple's Slump Offsets Gains in General Electric

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

Week Ahead: Major Earnings on Tap as Wall Street Readies for Geopolitical Moves

3 Hot Reads From TheStreet's Top Premium Columnists

3 Hot Reads From TheStreet's Top Premium Columnists