---
title: Energy Department Lends $480 Million to Revive Gulf Oil Platforms, Its First Closed Loan for Oil and Gas Production
description: "The Energy Department's lending office has closed its first loan for oil and gas production: $480 million to revive and expand 22 Gulf platforms off Louisiana."
author: Darie Nani (Editor-in-Chief)
date: 2026-11-11T17:00:45.261Z
updated: 2026-11-11T17:00:45.284Z
canonical: https://www.sovereignmagazine.com/article/doe-first-oil-gas-loan-arena-energy-gulf-platforms
image: https://cdn.nanimediahouse.com/gulf-shelf-oil-platform-complex-566785.webp
categories: Economy
content_type: News
region: United States
publication: Sovereign Magazine
access: members
schema_type: Article
about:
  - type: Organization
    name: U.S. Department of Energy
  - type: Organization
    name: Arena Energy
    description: Private oil and natural gas company producing on the Gulf of America shelf, based in The Woodlands, Texas.
    url: https://www.arenaenergy.com
---

The US Energy Department has closed a $480 million loan to bring idle offshore platforms in the shallow Gulf of America back into service and expand working ones, and says it is the department's [first closed loan supporting domestic oil and natural gas production](https://www.energy.gov/articles/energy-department-closes-480-million-loan-expand-american-energy-production-and-strengthen).

The borrower is Elkhorn Offshore, a wholly owned subsidiary of Arena Energy, a private oil and gas company based in The Woodlands, Texas, that has worked the Gulf shelf since 1999. The loan pays for Project Elkhorn, which will modernize 22 platforms in the Southern Eugene Island area off Louisiana. At peak production, DOE expects the project to add up to 38,600 barrels of oil and up to 77 million cubic feet of natural gas a day.

Arena says the money will return idled platforms to service, expand production and water-handling capacity at active ones, and pay for new natural gas pipeline to connect future wells to existing lines. The company says the closing followed DOE's technical, legal, environmental and financial due diligence.

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