Abstract
A field with two neighboring reservoirs was discovered in the Barents Sea in 2013 and 2014. After a successful extended well test of an appraisal well in 2018 and initial field planning tasks, a preliminary drilling and production schedule was proposed based on cross-domain collaboration and group work involving several disciplines. In this paper, mathematical programming is employed to model and optimize the economic value of the project in order to determine the best drilling and production schedule for the field. The optimization includes some of the technical constraints considered by the field development team while also considering uncertainties such as reservoir size, productivity of well, and cost. These have been systematically evaluated by using simulation-based optimization (sampling). The results were that the use of mathematical programming allows the field planner to evaluate several scenarios within a reasonable time frame, thereby enabling rapid changes in the decisions to respond to new information and risk considerations in a dynamic environment. This paper illustrates the benefits of utilizing mathematical programming in early field planning to optimize the drilling and production schedule.
Mature offshore oil field development: Solving a real options problem using stochastic dual dynamic integer programming
