The US Department of Energy (DOE) has finalised a $480m loan for Arena Energy’s wholly owned subsidiary Elkhorn Offshore for Project Elkhorn, an offshore oil and gas project off Louisiana in the Gulf of Mexico.
The loan, provided through the department’s Office of Energy Dominance Financing (EDF), will facilitate the modernisation of 22 offshore platforms in the Southern Eugene Island area.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Arena intends to use the funding to retool, refurbish, repower, and upgrade offshore infrastructure.
The project will focus on bringing idled platforms back into operation and boosting production and water-handling capabilities at existing facilities.
Additionally, new natural gas pipeline infrastructure is planned to enhance connectivity with existing pipelines.
EDF director Gregory Beard said: “Thanks to President Trump and Secretary Wright’s leadership, EDF is putting existing energy infrastructure back to work for the American people.
“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.”
Arena will work alongside its affiliated partners White Fleet Drilling and Rosefield Pipeline during the execution of Project Elkhorn.
At peak production, the Energy Department expects the project to add up to 38,600 barrels of oil per day (bopd) and as much as 77 million cubic feet (mcf) of natural gas per day to national energy supplies.
Over the life of the project, the company expects to contribute approximately 125 million barrels (mbbl) of oil and 250 billion cubic feet (bcf) of natural gas to US energy output.
According to figures provided, this increased production could result in an estimated $1.6bn in additional royalties collected by the federal government.
Arena currently produces around 30,000bopd offshore in the Gulf of Mexico.
The company stated that the project would support 2,800 jobs, including 2,400 construction positions and 400 operations roles, in an area considered to be one of the country’s most significant offshore energy corridors.
US Secretary of Energy Chris Wright said: “The US 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.
“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.”
The financing closed following the completion of technical, legal, environmental, and financial due diligence required under the department’s loan programme.
According to the DOE, it is the department’s first closed loan supporting domestic oil and natural gas production.
The department attributed the financing to US President Donald Trump’s Working Families Tax Cut.
In September 2026, Arena revealed that the company had been selected as the apparent high bidder for nine Outer Continental Shelf blocks in the Gulf of Mexico after participating in the Lease Sale Big Beautiful Gulf 3 (BBG3) auction.
