AZE.US
Azerbaijan’s state energy company SOCAR plans to acquire stakes in natural gas production and infrastructure assets owned by U.S.-based Comstock Resources.
The proposed transaction is valued at approximately 2.81 billion manats, or $1.65 billion, and is expected to close by the end of 2026, subject to regulatory and third-party approvals.
SOCAR and Comstock signed a letter of intent outlining the planned strategic partnership, Vesti Baku reported.
Assets SOCAR Plans to Acquire
Under the proposed terms, SOCAR would acquire:
- A 20% interest in Comstock’s Legacy Haynesville upstream assets;
- A 15% interest in its Western Haynesville upstream assets;
- 15% of Comstock’s existing 73% interest in Pinnacle Gas Services LLC.
Upstream assets cover oil and natural gas exploration and production.
SOCAR’s interest in Western Haynesville is expected to decline from 15% to 7.5% after the investment reaches a 15% rate of return, provided the conditions outlined in the agreement are met.
Comstock would remain the operator of the upstream properties and retain operational control of Pinnacle Gas Services.
Transaction Has Not Yet Closed
The companies aim to negotiate and sign a definitive purchase agreement by October 31, 2026, and complete the transaction by December 31.
SOCAR said it plans to arrange financing for the acquisition but did not disclose the proposed financing structure.
The letter of intent does not constitute a completed purchase. The transaction’s terms may change before final agreements are signed, and closing will depend on government approvals and other customary conditions.
The partnership is also expected to help expand international market access for natural gas produced by Comstock.
SOCAR Expands Cooperation With China
On the same day, SOCAR signed a separate memorandum with China National Offshore Oil Corporation, or CNOOC.
The companies plan to explore joint upstream projects in Azerbaijan and other countries, along with cooperation in refining, petrochemicals, international trade, engineering, equipment supplies and energy technology.
No investment amount, specific fields or timetable was announced for the potential projects with CNOOC.
AZE.US