Oct 10 (Reuters) - Exxon Mobil ( XOM ) said on Thursday

it has acquired state leases for over 271,000 acres in Texas

state waters for an offshore carbon dioxide (CO2) capture

operation.

The lease with the Texas General Land Office follows Exxon's

2021 bid for federal land off the Texas coast for CO2 capture,

and its emergence as a high bidder on 69 blocks in the shallow

waters of the U.S. Gulf of Mexico in 2023 to further expand its

potential carbon storage area.

Carbon capture, a process where CO2 generated from

industrial activity is stored underground, has been embraced by

oil companies including Chevron ( CVX ), Occidental Petroleum ( OXY )

and Talos Energy ( TALO ) to reduce emissions in the

environment and address climate change.

"With our growing roster of customers ready to deploy CCS

(carbon capture and storage), we'll be driving substantial

emissions reductions along the Gulf Coast," said Dan Ammann,

president of ExxonMobil Low Carbon Solutions.

The company did not disclose the duration or financial terms

of the lease.

A spokesperson for Texas Land Commissioner, Dawn Buckingham,

did not immediately reply to requests for terms of the lease.