U.S. Closes First Oil and Gas Production Loan Under Revamped Energy Financing Program
The U.S. Department of Energy has closed a $480 million loan to modernize 22 offshore platforms in the Gulf of Mexico, marking the department’s first completed loan financing domestic oil...
An oil and gas drilling platform stands offshore in the Gulf of Mexico in Dauphin Island, Alabama, U.S., October 5, 2013. REUTERS/Steve Nesius/File Photo
The U.S. Department of Energy has closed a $480 million loan to modernize 22 offshore platforms in the Gulf of Mexico, marking the department’s first completed loan financing domestic oil and natural gas production.
The financing, announced Tuesday, will support Arena Energy’s Project Elkhorn, a major infrastructure redevelopment effort in the Southern Eugene Island area off Louisiana. The project is expected to increase offshore production by as much as 38,600 barrels of oil and 77 million cubic feet of natural gas per day at peak output.
The loan comes through the Department of Energy’s Office of Energy Dominance Financing (EDF), formerly known as the Loan Programs Office, which the Trump administration has redirected toward expanding domestic energy production and strengthening existing infrastructure.
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