BP Prudhoe Bay Royalty Trust Offers Overriding Royalty in North America's Largest Oil Field
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DALLAS — BP Prudhoe Bay Royalty Trust is marketing its overriding royalty interest (ORRI) in Alaska's Prudhoe Bay field—the most prolific conventional oil field in North America—as part of a planned dissolution of the Trust. RedOaks Energy Advisors is serving as exclusive advisor on the transaction.
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Discovered in 1968, Prudhoe Bay has produced more than 13 billion barrels of oil and remains a cornerstone of U.S. energy infrastructure. The field is currently operated by Hilcorp, the largest private oil and gas operator in the country, known for revitalizing mature assets and driving production growth.
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The offered ORRI spans Hilcorp's position in the field and benefits from decades of stable, high-margin production. Because the cash flow from the ORRI occurs only above a certain price for WTI, the ORRI has not resulted in a royalty payment since Q4-2022. Cash flow from the ORRI has historically been strong, supported by a low projected PDP and PUD decline rate of 2% annually over the next five years. Continued investment by Hilcorp—including five active rigs and a targeted 5% production increase in 2025—offers potential upside for buyers.
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RedOaks will provide access to a virtual data room (VDR) beginning June 24, 2025. Bids are due by July 29 at 12 p.m. CST.
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