DOE Backs $480 Million Loan for Louisiana Offshore Project
The loan will fund Arena Energy's Project Elkhorn, which will modernize 22 offshore platforms off the Louisiana coast.
Updated on Nov. 10, 2026 in Oil and Gas
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The Department of Energy's Office of Energy Dominance Financing announced financial close of a $480 million loan for Arena Energy's Project Elkhorn. The project will modernize 22 offshore platforms off the coast of Louisiana.
Why it matters
The Energy Department says the loan is meant to help boost oil and natural gas production in the Gulf of America. Arena Energy currently produces about 30,000 barrels of oil per day in the Gulf, and the project is expected to add to that output.
The $480 million loan is projected to lift peak output by up to 38,600 barrels of oil and 77 million cubic feet of natural gas per day, compared with Arena's current production of about 30,000 barrels of oil per day in the Gulf. The source does not give a timeline for reaching that peak.
The players
Department of Energy
The federal Department of Energy oversees the nation's energy policy, research, and loan programs, including the Office of Energy Dominance Financing that issued this loan.
Arena Energy
Arena Energy is an independent oil and gas company operating in the Gulf of America, and it is the borrower behind Project Elkhorn.
The details
The Department of Energy's Office of Energy Dominance Financing announced financial close of the loan for Arena Energy's Project Elkhorn. The project will modernize 22 offshore platforms off the coast of Louisiana and is expected to create thousands of jobs.
Timeline
Nov. 10: The Department of Energy announced financial close of the loan, when the AAA national average for regular gas was $3.9788.
Market Landscape
The federal loan program backing Project Elkhorn is being used to finance expanded offshore oil and gas output in the Gulf of America. The move comes as national average gas prices remain well above a year ago, at $3.9788 versus $3.0707.
Louisiana gas prices and fuel costs for drivers are shaped by Gulf output, and national average regular gas stood at $3.9788 on Nov. 10. The loan's projected production gains could affect supply over time, though the source gives no timeline.
The takeaway
Federal financing for offshore modernization can expand Gulf output, but the source leaves open when added production will arrive. Readers tracking Louisiana energy should watch for the project's timeline and job figures as they are released.
Further reading
For more on the industry, see Oil and Gas coverage of Louisiana production trends.
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