TotalEnergies exits U.S. offshore wind after $928M refund deal
The U.S. federal government has agreed to refund TotalEnergies approximately $928 million for offshore wind leasing rights. The energy giant will now exit all its U.S. offshore wind projects as part of a settlement with the Department of the Interior. Shares in the company dipped slightly following the announcement, while broader energy markets also saw declines.
TotalEnergies will surrender two offshore wind leases: Carolina Long Bay and New York Bight. Both were acquired in 2022 but will now be terminated under the new agreement. The company has also pledged not to pursue any future offshore wind developments in the U.S.
The refunded amount must first be reinvested in approved U.S. energy projects before being released. TotalEnergies plans to allocate the $928 million—alongside additional funds—toward four liquefaction units at the Rio Grande LNG facility in Texas. Further investments will target conventional oil fields in the Gulf of Mexico and shale gas production, totalling roughly $1 billion.
On the trading floor, TotalEnergies shares fell by 1.03% after the settlement was announced. Meanwhile, crude oil futures dropped sharply by 9.51% in the same session. Natural gas futures also declined, losing 5.12% of their value.
The settlement marks a clear shift in TotalEnergies' U.S. strategy, moving away from offshore wind to focus on oil, gas, and LNG. Investments in Texas and the Gulf will begin in 2026, once the refund is processed. The company's decision aligns with broader market trends as energy prices faced downward pressure during the announcement.
