(WO) — Comstock Resources, Inc. and Azerbaijan’s SOCAR have signed a framework agreement advancing their previously announced $1.65 billion strategic partnership in the Haynesville shale.
The agreement formalizes the companies’ commitment to negotiate and execute a definitive purchase and sale agreement consistent with the letter of intent announced earlier this year. Comstock expects the definitive agreement to be signed by Oct. 31, with the transaction targeted to close by year-end 2026.
Under the planned partnership, SOCAR would invest $1.65 billion in Comstock’s Haynesville shale assets, expanding its exposure to one of the largest U.S. natural gas-producing regions and a key supply basin for Gulf Coast LNG exports.
Comstock and SOCAR also plan to explore opportunities for SOCAR to market natural gas attributable to Comstock’s interest in the Haynesville assets as LNG in international markets outside the U.S.
The companies will evaluate potential LNG offtake counterparties, pricing structures and logistical and regulatory requirements associated with international marketing arrangements.
The partnership forms part of a broader energy relationship between the U.S. and Azerbaijan. The companies said the agreement builds on the two countries’ longstanding cooperation in the oil and gas sector.
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