SOCAR strikes nearly $1.7 billion deal with US energy company

Azerbaijan’s state oil company SOCAR and US-based Comstock Resources, Inc. have signed a Letter of Intent to establish a strategic partnership, with the transaction valued at approximately $1.65 billion.

Under the agreement, SOCAR will acquire a 20% interest in Comstock’s Legacy Haynesville upstream assets, a 15% interest in its Western Haynesville upstream assets, and 15% of Comstock’s 73% stake in Pinnacle Gas Services LLC, Caliber.Az reports, citing SOCAR.

Under the proposed terms, SOCAR’s 15% interest in the Western Haynesville assets will be reduced to 7.5% once a 15% return on investment in those assets is achieved. The total transaction value, subject to customary purchase price adjustments, is estimated at $1.65 billion.

SOCAR plans to take the necessary measures to finance the transaction. The parties intend to agree on and sign a definitive purchase agreement no later than October 31, 2026, and complete the deal by December 31, 2026, subject to the fulfilment of relevant conditions, including obtaining required government and third-party approvals.

As part of the strategic partnership, SOCAR is expected to participate proportionally in new opportunities to be developed by Comstock in Legacy Haynesville and Western Haynesville. The companies will also cooperate on expanding opportunities to bring Comstock’s natural gas to international markets, according to the company.

SOCAR President Rovshan Najaf said the partnership, which brings together the extensive experience and capabilities of the two companies, would provide a strong foundation for further expanding bilateral strategic cooperation.

“We are pleased to invest alongside a team with extensive experience in developing the Haynesville and Western Haynesville fields, and we believe our long-term partnership will develop successfully,” Najaf noted.

For his part, Comstock Chairman and CEO M. Jay Allison pointed out that the partnership would bring a reputable international strategic partner into the company, helping accelerate value creation for investors while significantly reducing its debt burden and fully funding the planned development of Western Haynesville.

“At the same time, Comstock will retain operatorship and control of its upstream and midstream assets, and will also preserve future value creation potential through the mechanism providing for the phased reduction of its ownership interest,” he added.

According to SOCAR, Comstock will remain the operator of all its upstream assets and continue to manage and exercise operational control over Pinnacle Gas Services LLC. SOCAR’s proportional participation in future development programs, as well as in new lease acquisitions and assets of mutual interest, will be governed by separate agreements under the final transaction structure.

By Jeyhun Aghazada