Socar Inc.

Comstock Resources and SOCAR have signed a Framework Agreement memorializing their previously announced strategic partnership and SOCAR's $1.65 billion investment in the Haynesville Shale. The agreement, signed in conjunction with the Azerbaijan International Investment Forum, commits both parties to negotiate and execute a definitive purchase and sale agreement consistent with the previously announced letter of intent. The definitive agreement is anticipated to be signed no later than October 31, 2026, with the transaction expected to close by the end of 2026. The two companies will also explore opportunities for SOCAR to market natural gas produced from the Haynesville Shale assets attributable to Comstock's interest for sale as LNG in international markets outside the United States. The partnership is part of a broader relationship between the United States and Azerbaijan under the protocol of the 1st Azerbaijan-United States Economic Dialogue signed in June 2026.

TotalEnergies and its partners SOCAR and XRG have taken the Final Investment Decision for the Full Field Development of the Absheron gas and condensate field in the Caspian Sea. TotalEnergies holds 35% and operatorship, SOCAR holds 35% and XRG holds 30%. The full field development will raise overall field production to 6 BCMA of gas and 47,000 barrels per day of condensate, up from the first phase's 1.5 BCMA and 12,000 barrels per day, with start-up expected in 2029. The field, located 100 km south-east of Baku, holds approximately 140 billion cubic meters of recoverable gas reserves, and its output will supply Azerbaijan's domestic market and be exported to Turkey through existing infrastructure. Gas will be produced from 4 subsea wells and processed in a new fully electrified onshore plant, keeping the project's scope 1 and 2 greenhouse gas emissions intensity below 4 kg CO2e/boe.

Comstock Resources signed a nonbinding letter of intent under which SOCAR would pay $1.65 billion in cash for non-operated working interests representing 20% of the Legacy Haynesville and 15% of the Western Haynesville upstream interests held by the company, plus 15% of Comstock's 73% ownership interest in Pinnacle Gas Services. The parties are targeting a definitive agreement by October 31, 2026, and closing by year-end, subject to negotiations, approvals, and customary conditions. Separately, a Jerry Jones family partnership will fund 85% of the drilling and completion costs for 18 Western Haynesville wells and 80% for nine Legacy Haynesville wells, a 27-well program expected to cost approximately $450 million over 12 months, with 50% of the covered interest reverting to Comstock after a 15% return on investment. Comstock estimates the SOCAR proceeds would cut company-defined non-GAAP net debt from $3.1 billion to $1.5 billion as of June 30, 2026, a roughly $1.6 billion reduction that would nearly halve the measure, while Comstock would retain operatorship of the upstream assets and control of Pinnacle. SOCAR's Western Haynesville interest would fall from 15% to 7.5% after five years once it earns a 15% return, and the drilling venture is a related-party arrangement with the family of Jerry Jones, the majority stockholder.

Brent crude fell back to around $80 per barrel after renewed optimism over a potential US-Iran draft agreement eased geopolitical fears, even as President Trump criticized US refiners for high fuel profits. Comments from US Treasury Secretary Scott Bessent and Qatar's Foreign Ministry about a draft agreement being drafted buoyed hopes for a diplomatic resolution to the US-Iran conflict. Trump accused ExxonMobil and Chevron of making too much money and told them to give some of that money back to the public, while the 3-2-1 spread has doubled since early March to $60 per barrel. The average US gasoline pump price has dipped to $4.08 per gallon as of August 4, up 30% from a year ago. Separately, Shell agreed to sell its European onshore renewables portfolio to TotalEnergies, BP completed the divestment of its Gelsenkirchen refinery in Germany, and SOCAR bought out Itochu's 3.65% operating interest in the Azeri-Chirag-Guneshli offshore field.