Field Development Planning Using Simulated Annealing - Optimal Economic Well Scheduling and Placement

Abstract

Abstract A method for optimizing the net present value of a full field development by varying the placement and sequence of production wells is presented. This approach is automated and combines an economics package and Mobil’s in-house simulator, PEGASUS, within a simulated annealing optimization engine. A novel framing of the well placement and scheduling problem as a classic "travelling salesman problem" is required before optimization via simulated annealing can be applied practically. An example of a full field development using this technique shows that nonuniform well spacings are optimal (from an NPV standpoint) when the effects of well interference and variable reservoir properties are considered. Examples of optimizing field NPV with variable well costs also show that non-uniform wells spacings are optimal. Project NPV increases of 25 to 30 million dollars were shown using the optimal, non-uniform development versus reasonable, uniform developments. The ability of this technology to deduce these non-uniform well spacings opens up many potential applications that should materially impact the economic performance of field developments.