An analysis is presented that quantifies the value-adding brought to a well by installing downhole flow control valves (FCVs) in a reservoir with uncertainties represented by multiple equiprobable realizations, two aquifer strengths, and three oil/water contacts (OWCs). The complexity of the model makes nonintuitive its response to FCV adjustment. From an openhole (OH) baseline net present value (NPV), it was possible to extract specific value-adding for the following, nonadjustable valves, the ability to adjust the valve, and how future information can add further value. The issue of measurement bin size is discussed, and the implication of making them too large, or too small, is described. Finally value erosion due to valve failure is also addressed. The solution presented used dynamic programming (DP), which was validated against a full enumeration of the problem using reservoir simulation. Approaches to proxies to traverse the (potentially large) decision space are also discussed.

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