Arena Energy will use a $480 million loan from the U.S. Department of Energy for its Project Elkhorn program, modernizing 22 offshore platforms off the coast of Louisiana.
The loan through DOE’s Office of Energy Dominance Financing (EDF) is aimed at increasing oil and natural gas production across the Gulf of Mexico shelf, according to a DOE announcement Nov. 12. At peak production, the project expected to add up to 38,600 bbls. of oil per day and up to 77 million cu. ft. of natural gas per day to U.S. energy production.
Enabled by the 2025 federal tax cuts, the loan “marks the Energy Department's first closed loan supporting domestic oil and natural gas production” according to the agency.
“The United States is the world’s largest producer and exporter of oil and natural gas, and thanks to President Trump, American energy production will continue to grow,” said Secretary of Energy Chris Wright.
“Project Elkhorn will increase oil production by up to 38,600 barrels per day and create thousands of jobs. By providing financing for projects like Project Elkhorn, the Energy Department is expanding domestic production and strengthening our energy security to power American prosperity for decades to come.”
Arena Energy currently produces about 30,000 bbls. offshore in the Gulf. Its Project Elkhorn will modernize existing offshore infrastructure and expand production capacity to add an estimated 125 million bbls. of oil and 250 billion cu. ft. of natural gas over the life of the project.
DOE and Arena officials estimate the project will create 2,400 construction-related jobs and 400 operations jobs in one of the nation's most important offshore energy corridors.
Arena was founded in 1999 “on the belief that the mature fields of the Gulf of America shelf still hold vast potential,” the company said in announcing the loan. “Today marks a significant milestone for Arena’s commitment to the shallow waters of the Gulf and for American energy production.”
Arena subsidiary Elkhorn Offshore will retool, refurbish, and repower offshore platforms in the Southern Eugene Island area off Louisiana.
“American energy dominance isn’t built only on new frontiers,” said Michael Minarovic, Arena’s CEO and founder, who started the company in 1999 “on the belief that the mature fields of the Gulf of America shelf still hold vast potential.”
“It’s built by putting proven American fields back to work. Starting today, that’s exactly what we’re doing in the Gulf of America. This financing from the Department of Energy lets us repower existing infrastructure, develop proved reserves, and keep producing some of the most reliable barrels in the world right here at home – with American workers, on American leases, for American refineries.”
