US Energy Department closes $480 million loan for Gulf offshore oil project

WASHINGTON, Nov. 10 — The U.S. Department of Energy (DOE) announced on Nov. 10 the financial close of a $480 million loan for Arena Energy's Project Elkhorn to increase oil and natural gas production across the Gulf of America shelf.

The loan was made through DOE's Office of Energy Dominance Financing (EDF). DOE said it is the department's first closed loan supporting domestic oil and natural gas production.

The project will modernize 22 offshore platforms off the coast of Louisiana and, at peak production, is expected to add up to 38,600 barrels of oil per day and up to 77 million cubic feet of natural gas per day, according to DOE.

Over the life of the project, it will add approximately 125 million barrels of oil and 250 billion cubic feet of natural gas to U.S. energy production, the department said. DOE said the project will create 2,400 construction-related jobs and 400 operations jobs.

Arena Energy currently produces approximately 30,000 barrels of oil per day offshore in the Gulf of America, according to DOE.

"Project Elkhorn will expand domestic oil and natural gas production, create good-paying American jobs, and strengthen our energy security while generating substantial returns for American taxpayers," EDF Director Gregory A. Beard said.

U.S. Secretary of Energy Chris Wright said the project "will increase oil production by up to 38,600 barrels per day and create thousands of jobs."