The State Oil Company of Azerbaijan (SOCAR) and the US‑based Comstock Resources, Inc. have signed a Letter of Intent aimed at establishing a strategic partnership, Report informs, citing SOCAR.
Under the document, SOCAR will acquire a 20% participating interest in Comstock's Legacy Haynesville upstream assets, a 15% interest in the Western Haynesville upstream assets, and a 15% interest in Comstock's 73% stake in Pinnacle Gas Services LLC. SOCAR's 15% interest in the Western Haynesville assets is expected to be reduced to 7.5% under certain conditions once a 15% return on investment is achieved on those assets.
The total value of the transaction, including standard purchase price adjustments, is $1.65 billion. SOCAR plans to arrange the necessary financing for the transaction. The parties aim to finalise and sign the definitive purchase and sale agreement by no later than 31 October 2026, and to complete the transaction by 31 December 2026, subject to obtaining necessary government and third‑party approvals and fulfilling relevant conditions.
Under the strategic partnership, SOCAR is expected to participate proportionally in future opportunities created by Comstock in Legacy Haynesville and Western Haynesville. Additionally, the parties will cooperate on expanding Comstock's natural gas access to international markets.
SOCAR President Rovshan Najaf stated that this partnership brings together the rich experience and extensive capabilities of both companies, creating a solid foundation for further expanding their strategic cooperation: "We are pleased to jointly invest with a team that has extensive experience in developing the Haynesville and Western Haynesville fields, and we believe our long‑term partnership will develop successfully."
M. Jay Allison, Chairman of the Board and Chief Executive Officer of Comstock, said the company is delighted to announce a strategic partnership with SOCAR: "This partnership will enable us to bring in a reputable international strategic partner that will help accelerate value creation for our investors, while significantly reducing our debt burden and fully financing the planned development of the Western Haynesville area. At the same time, Comstock will retain operatorship and control over its upstream and midstream assets, preserving future value creation potential through a mechanism providing for a phased reduction of its participating interest."
Comstock will remain the operator of all its upstream assets and will continue to manage and maintain operational control of Pinnacle Gas Services LLC. SOCAR's proportional participation in future development programmes, as well as new leases and acquisitions in areas of mutual interest, will be governed by separate agreements within the framework of the final transaction.
https://report.az/en/energy/socar-and-comstock-resources-sign-letter-of-intent-for-strategic-partnership