Framework for Field Optimization To Maximize Asset Value

Abstract

Summary In this paper, we propose an optimization framework for maximizing asset value, both with and without uncertainty. We first present the methodology to treat a general control optimization in the presence of uncertainty, followed by a brief section on the optimization algorithms used. We then describe the field model example used to illustrate the application of the methodology. Through a systematic analysis of various deterministic and stochastic cases, we address the various objectives sought. Using net present value (NPV) as a measure, we also explore the valuation of advanced completions along with the returns gained from expanding surface gas-handling facilities. The method also generates an efficient frontier that can be used for risk and decision analysis. The results clearly demonstrate the value of such a framework for value maximization in planning both near- and long-term time horizons as well as providing the necessary foundation for maximizing asset value.