NEW YORK (TheStreet) -- Shares of Petrobras (PBR.A) are rallying, up 4.25% to $9.33 in afternoon trading Tuesday, following reports that Brazil may change its national content rules for the oil sector, according to Reuters.
Brazil energy minister Eduardo Braga said the government is in talks to ease its oil regulations, but the new rules would not take effect until after the October auction of exploration and production concessions, Reuters added.
Brazil's government is also discussing a 2010 law that requires Petrobras to be the operator, and own a minimum of a 30% stake in any new exploration and development for the Subsalt Polygo offshore region, Reuters noted.
Last week, Vale (VALE) CEO Murilo Ferreira was named the chairman of the state-owned energy company. Petrobras is at the center of Brazil's biggest corruption and money laundering scandal, Bloomberg reported.
Petrobras is a Brazil-based integrated oil and gas company, operating through seven segments.
Separately, TheStreet Ratings team rates PETROLEO BRASILEIRO SA- PETR as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PETROLEO BRASILEIRO SA- PETR (PBR.A) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."