The U.S. Department of Energy finalized a $480 million loan on November 10, 2026, backing Arena Energy’s Project Elkhorn to modernize 22 offshore platforms in the Gulf of America.
The financing marks the federal loan program’s first completed transaction supporting domestic oil and natural gas production. Executed through the Office of Energy Dominance Financing, the loan provides long-term capital for infrastructure upgrades in the Southern Eugene Island area off the coast of Louisiana, according to Construction Review.
Project Elkhorn centers on retooling, refurbishing, and repowering existing facilities to return idled platforms to service and expand water-handling capacity at active sites. The initiative also involves constructing new natural gas pipelines to connect future wells directly into regional transportation networks.
The Energy Department is investing in American oil and natural gas production through Arena Energy’s Project Elkhorn in the Gulf of America! This will lower energy costs for families and businesses and strengthen America's energy independence. pic.twitter.com/w5nkGPWyxm
Arena Energy currently produces approximately 30,000 barrels of oil per day in the gulf. At peak output, Project Elkhorn is expected to add up to 38,600 barrels of oil daily and 77 million cubic feet of natural gas daily. Over the lifespan of the project, total incremental output is projected to reach approximately 125 million barrels of oil and 250 billion cubic feet of natural gas.
The financial close followed the completion of rigorous technical, legal, environmental, and financial due diligence required under the Department of Energy’s loan program. On Tuesday, U.S. Secretary of Energy Chris Wright journeyed to Luling, Louisiana, accompanied by Under Secretary of Energy Kyle Haustveit, Louisiana Department of Conservation and Energy Secretary Dustin Davidson, and Arena Energy CEO Mike Minarovic, to reveal the funding accord.
Secretary Wright noted during the announcement that the project was enabled by President Trump’s Working Families Tax Cut, describing the initiative as a mortgage-style mechanism for small oil and gas fields on the shelf that otherwise must entirely cash flow their development. Department officials stated that investing in such infrastructure projects will ultimately lower costs for American consumers.
The Southern Eugene Island area is one of the most prolific oil-producing regions in American history, and its infrastructure still has decades of productive life ahead. What it needed was long-term capital to match the opportunity,
Mike Minarovic, CEO and founder of Arena Energy
Minarovic noted that the company has invested over $5 billion in the Gulf of America and remitted more than $1.8 billion in federal royalties since its founding in 1999. In addition to these historical achievements, the company has successfully decommissioned over 300 wells and 45 platforms and other structures throughout its operational history.
Federal officials emphasized the broader economic impact of the financing package during announcements in Louisiana. Energy Secretary Chris Wright connected the initiative to domestic energy security and taxpayer returns.
Project Elkhorn will increase oil production by up to 38,600 barrels per day and create thousands of jobs.
U.S. Secretary of Energy Chris Wright
Arena estimates that the added output will generate roughly $1.6 billion in additional federal royalties, delivering a return of more than three times for taxpayers. Executives at the firm emphasized that putting capital back into current assets stands out as one of the swiftest paths to elevating U.S. energy production, keeping skilled labor employed, and generating value while speeding up extra royalty revenues for taxpayers over the coming decades.
The project is slated to support 2,800 jobs, including 2,400 construction roles and 400 operations positions, increasing workforce opportunities across the regional offshore energy corridor.