KEY POINTS
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The US Department of Energy closed a $480 million loan for Arena Energy’s Project Elkhorn, an offshore infrastructure redevelopment off the Louisiana coast.
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The plan covers upgrades to 22 existing platforms, including returning idled facilities to service and expanding production and water-handling capacity.
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DOE estimates the project could support 2,400 construction-related jobs and increase oil and natural gas output at peak production.
The Department of Energy closed a $480 million loan Nov. 10 to help Arena Energy modernize 22 offshore platforms off Louisiana. The project, called Elkhorn, will upgrade existing infrastructure in the Southern Eugene Island area rather than build an entirely new offshore production area.
Arena Energy plans to refurbish, repower and retool platforms, return idled facilities to service, expand production and water-handling capacity, and add natural gas pipeline infrastructure.
The DOE estimates Elkhorn could support 2,400 construction-related jobs. It described the financing as support for modernizing the platforms and increasing production across the Gulf Shelf in its announcement.
Project details, including an anticipated start date, were not included in the announcement.
How Much Oil and Gas Will Project Elkhorn Produce
At peak production, the project is expected to add up to 38,600 barrels of oil per day and 77 million cubic feet of natural gas per day, the department said.
The projected output depends on completing the platform upgrades and related infrastructure.
Arena Offshore is described on the company website as an oil and gas operator and producer focused on executing development opportunities on the Gulf Shelf. It said that it will execute the project with its affiliated partners White Fleet Drilling and Rosefield Pipeline.
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