Defining the Optimal Development Strategy to Maximize Recovery and Production Rate from an Integrated Offshore Water-Flood Project

Abstract

Abstract A reservoir development plan provides the necessary guidance and information for establishing whether or not a project is economically viable considering possible development project options, risks and uncertainties in order to define the most optimal development concept that will increase oil production and reduce production costs. The aim of this project was to determine the optimum way to develop and produce an offshore oil field in a manner that considers risks and uncertainties and values stakeholders’ interest. A stochastic multi-tank reservoir model was created using MBAL and it consist of various producers and water injection wells. Sensitivity analysis was carried out on Seven development scenarios with a view to examine effect of maintaining reservoir pressure, sustaining well productivity and injectivity, optimize well counts and improving well delivery- timing, cost and well performance. The economic viability of each of the development scenarios was carried out to determine the net present value, incremental project cash flow, unit technical cost, unit development cost and breakeven price BEP of each of the scenarios. The optimal development strategy was then selected based on the production performance and key economic indicators. The project provided an opportunity to develop an additional 396MMbbls of recoverable oil from 32 new wells both producers and injector wells (P+WI).