The U.S. Department of Energy (DOE) announced the closing of a $480 million loan to Arena Energy for Project Elkhorn, an initiative to expand domestic oil and natural gas production in the Gulf of America. The project will modernize 22 existing offshore platforms off Louisiana’s coast to increase production capacity and strengthen U.S. energy infrastructure.
At peak production, Project Elkhorn is expected to add up to 38,600 barrels of oil per day and 77 million cubic feet of natural gas per day. Over the project’s lifetime, it is projected to contribute approximately 125 million barrels of oil and 250 billion cubic feet of natural gas to U.S. energy production. The project is also expected to create 2,400 construction-related jobs and 400 operations jobs.
This marks the DOE’s first closed loan supporting domestic oil and natural gas production through its Office of Energy Dominance Financing. According to the department, the investment will strengthen U.S. energy security, expand reliable domestic energy supplies, support job creation, and generate returns for American taxpayers. All production and employment figures are DOE projections.
