W2V12 Reservoir Simulation V2016 Handout V2

Oil & Gas
From exploration to distribution

Week 2 V12 Simulation Model and Field Development Strategy
Vladimir Choque-Flores
W2V12 Reservoir simulation p. 1

IFPEN - IFP School 2016 / TOTAL SA 2016
IFPEN - IFP School 2015 / TOTAL SA 2015 / IFP Training 2015
Reservoir modeling
During this lesson, we will define what we mean by a reservoir simulation model, consider its
benefits, review the key uncertainties associated with reservoir simulation and present the
main issues in defining a field development strategy. At this stage, we will focus on the third
part of the reservoir engineering scheme which is the reservoir modeling!
Reservoir simulation is the process of inferring the behaviour of fluid flow in a petroleum
reservoir system and its a powerful tool for guiding reservoir management decisions. The
main objectives of reservoir models are, in the appraisal phase: to identify uncertainties and
define the needs of data. Then, in the field development phase: to identify production
mechanisms, define the number, location and type of wells, predict production profiles and
assess the risks associated to the project. From this, we can conclude that it is indeed a tool
for decision making.
Data Synthesis and Integration

In the construction of a reservoir model, the main input are:
1. The geological model, explained previously, which represents the reservoir by a grid
containing millions of blocks, each of them populated with properties such as
porosity and permeability.
2. The fluid which is characterized to define the type of fluid and the phase diagram.
3. The fluid flow behaviour which will define how easily two or three phases flow
simultaneously in the porous media.
4. The production data which concerns the reservoir pressure and fluid rates during
the production phase allowing the production mechanisms to be assessed.
All these data are integrated in the reservoir model which is more or less complex depending
on the project objectives
Reservoir Simulation Model

Once the data have been integrated we can introduce the reservoir model.
The complexity of questions and the data available will determine the sophistication of the
model to be used.
Here, we will only introduce two models: The tank model, which is a zero-dimensional
model useful for initial reservoir estimation, and the up-scaled reservoir simulation model,
which is a three-dimensional model.
The tank model is a very simple model where the reservoir is represented as an
homogeneous volume with a unique porosity, pressure, etc.
Here, the material balance equation is solved and the main objectives are to check the data
consistency, estimate the fluids in place and predict production profiles.
Then we have the up-scaled reservoir model, where the reservoir is represented by a grid in
which the space is discretized in 3 dimensions. The geological grid is up-scaled to reduce the
number of blocks in order to simplify the resolution.
Lets call a generic block i exchanging oil, gas and water with its neighboring blocks.
Solving the material balance equations, we obtain the pressures and saturations for oil, gas
and water at each time step and for each block resulting in oil saturation and pressure
distribution evolving with time.

Lets see an example with one injector well, I1, and two producer wells, P1 and P2.
Looking at the oil saturation distribution in one layer, we observe the water front advancing
from the injector well to the producer wells. The flow shows a channel path that
corresponds to a fluvial depositional environment.
When we implement reservoir simulation modeling we can simulate different well locations
and perforations, production and injection rates, etc which allow us to evaluate different
strategies in order to optimize the reservoir performance.
As seen until now, modeling and simulation imply data interpretation and assumptions,
therefore its necessary to consider the uncertainties, such as: the fluids in place, the
geological description, the presence of an active aquifer, the fluid and flow properties and
the rock properties distribution.
These uncertainties represent the risk of the project and might be reduced by carrying out
seismic surveys, drilling appraisal wells, conducting well tests, etc
Field Development Strategy

Now that we understand how reservoir models are built and what we can obtain from them,
we will be able to understand how useful they are to evaluate different strategies to develop
an oilfield.
Looking at the life cycle of a hydrocarbon field, the development phase involves the choice
of the initial development plan and the construction of the fields production facilities.
Reservoir simulation models are used from the appraisal phase right up to the end of
production to define the field development strategy.

1. In order to set up a field development strategy, we must first describe the field and
understand the field behaviour. These points were covered in the two previous
lessons.
2. Secondly, several development strategies need to be formulated, based on a series of
reservoir simulation studies, the main objectives being:
to determine the production profile, the number of wells, their location

and type,
and, to estimate the impact of uncertainties.

3. Finally, the management will make a decision based on the evaluation of production
profiles, economic performance and risk.
The first step is the description and understanding of the field behaviour, as we have just
seen together.
The second step in the field development plan involves the prediction of the production
profile.
A typical production profile includes:
A ramp-up phase related to the increasing number of wells,
A plateau corresponding to the field production potential. This plateau rate is usually
fixed as a percentage of the estimated ultimate reserves, called EUR in the formula.
And a decline phase, due to pressure decrease and to an increase of water or gas
production. This phase might be mitigated by water or gas injection or any improved
oil recovery technique detailed later on.
In order to predict the reservoir behaviour, it is important to understand the production

mechanisms in each phase of production.
In the natural depletion phase, the production mechanisms present will be fluid expansion,
pore compaction and potentially other mechanisms such as aquifer influx from an aquifer.
Afterwards, the pressure support can also be external and produced by water or gas
injection.
The pressure support can also be external and produced by water or gas injection. In this
case: What is the target for reservoir pressure? When will the injection start? Which fluid
will be injected?
Finally, in the decline phase, we can implement any improved oil recovery technique:
enhanced oil recovery, infill drilling, artificial lift etc.
At this stage we are able to propose different configurations for wells, resulting in different
production profiles.
We begin calculating the number of wells by dividing the plateau rate to be produced by the
average production rate per well. Knowing that this is a theoretical calculation, we will
implement different numbers of wells in the simulation model, different locations and
perforation levels.
In this example, the minimum number of wells to achieve the production plateau is 3.
As we increase the number of wells, the plateau lasts longer. The difference between drilling
4 or 6 wells is very small, we must look then at the economic performance in order to make
a choice. Is the incremental oil revenue higher than the investment? Have we reached the
optimum number of wells?

Another important issue in the well definition is the type of well. The most common types
are:
1. Vertical wells: recommended in reservoirs with vertical compartments.
2. Deviated wells: depending on the reservoir structure.
3. Horizontal wells: recommended in narrow layers, low permeability reservoirs and
compartmentalized reservoirs.
As we have seen, the reservoir model provides predictions of reservoir behaviour for a
whole range of possible recovery schemes. After having evaluated several field development
strategies, with their own production profiles, different well systems: number, location and
type of well and economic performance the options are compared and presented to the
management.
The management's decision will be based upon the production profile, the economic
performance and the risk associated to uncertainties.
After all these interesting Reservoir Engineering let us now focus into the production of the
known fluids in our reservoir in the following modules.


W2V12 Reservoir Simulation V2016 Handout V2

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Oil & Gas

From exploration to distribution

W2V12 Reservoir simulation p. 1

Data Synthesis and Integration

Reservoir Simulation Model

W2V12 Reservoir simulation p. 4

Field Development Strategy

W2V12 Reservoir simulation p. 5

to determine the production profile, the number of wells, their location

and, to estimate the impact of uncertainties.

In order to predict the reservoir behaviour, it is important to understand the production

W2V12 Reservoir simulation p. 7

W2V12 Reservoir simulation p. 9

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