WASHINGTON — The U.S. Department of Energy announced today it closed a $480 million loan for Arena Energy's Project Elkhorn to increase oil and natural gas production across the Gulf shelf.

According to the department, the project will modernize 22 offshore platforms off the coast of Louisiana. At peak production, it is expected to add up to 38,600 barrels of oil a day and up to 77 million cubic feet of natural gas a day to U.S. energy production.

"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 said.

Arena Energy now produces about 30,000 barrels of oil a day offshore in the Gulf, the department said. It said Project Elkhorn will add about 125 million barrels of oil and 250 billion cubic feet of natural gas over the life of the project.

The department said Project Elkhorn will create 2,400 construction-related jobs and 400 operations jobs. It also said the loan is the Energy Department's first closed loan supporting domestic oil and natural gas production.