ExxonMobil is surrendering approximately 850,000 acres of offshore leases in the Gulf of Mexico. The company opted not to renew 163 federal shallow-water leases previously designated for carbon sequestration.
Regulatory uncertainty and rulemaking delays from the U.S. Department of the Interior prompted the decision. This move marks a strategic shift toward onshore and state-water carbon capture projects where permitting is more advanced.
ExxonMobil originally spent less than $25 million to acquire the federal leases. The company reports that its onshore carbon capture and storage business is currently progressing faster than anticipated.