Arena Energy closed a $480 million loan from the US Department of Energy to fund Project Elkhorn in the Gulf of Mexico. The financing will modernize 22 offshore platforms off Louisiana through its subsidiary, Elkhorn Offshore. At peak, the project is expected to add up to 38,600 barrels of oil and 77 million cubic feet of gas per day. The loan marks a shift from threats of windfall profits taxes to direct financial support for the oil and gas industry.
The Elkhorn project aims to upgrade 22 platforms off Louisiana, with peak production expected to increase by up to 38,600 barrels of oil and 77 million cubic feet of gas per day.
Read the full storyThe Energy Department expects the project to add 38,600 barrels of oil and 77 million cubic feet of gas a day at peak production, and to increase US supplies over its lifetime.
The US government is providing direct funding to boost domestic energy production and support the offshore oil and gas industry in the Gulf of Mexico.