U.S. Energy Secretary Chris Wright. Image: official portrait
(WO) – The U.S. Department of Energy’s (DOE) Office of Energy Dominance Financing (EDF) has closed a $480-million loan for Arena Energy’s Project Elkhorn, which will modernize 22 offshore platforms on the U.S. Gulf shelf off Louisiana. At peak, the project is expected to add up to 38,600 bpd of oil and 77 MMcfd of gas. DOE said it is the department’s first closed loan supporting domestic oil and gas production.
Arena currently produces about 30,000 bpd of oil in the U.S. Gulf. Over its life, Project Elkhorn is expected to add about 125 MMbbl of oil and 250 Bcf of gas by upgrading existing offshore infrastructure and expanding production capacity. DOE said the project will create 2,400 construction jobs and 400 operations jobs.
“Project Elkhorn will increase oil production by up to 38,600 barrels per day and create thousands of jobs,” said Energy Secretary Chris Wright. “By providing financing for projects like Project Elkhorn, the Energy Department is expanding domestic production and strengthening our energy security.”
“EDF is putting existing energy infrastructure back to work for the American people,” said EDF Director Gregory A. Beard. He added that the project is expected to generate “substantial returns for American taxpayers.”
DOE said the loan was made possible by the Working Families Tax Cut legislation. The financing follows Arena’s recent launch of a multi-well drilling program on the Gulf shelf.
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