This paper presents the development of an integrated, multi-discipline reservoir model for dynamic flow simulation and performance prediction of a geologically complex naturally fractured volcanic reservoir in the Shang 741 Block of the Shengli field in China. The reservoir contains a series of vertically separated fractured volcanic reservoirs with different size and fracture intensity. A static geological model of the reservoir is developed based on integration of principles of lithological depositional setting, petrophysics, fracture analysis and stochastic fracture network modeling using FormationMicroImager (FMI) log data, a 3D seismic survey and advanced seismic interpretations.

A simulation model for the reservoir is constructed in a step-wise fashion by properly combining multi-disciplinary data sources, anchored with sound principles of reservoir engineering and geoscience. Information from single well and interference pressure transient data as well as water cut information from wells help assign key dynamic controls on the reservoir. These include effective fracture permeability magnitude, quantification of fracture-matrix interaction, reservoir unit compartmentalization, and flow transmissibility characteristics of conductive faults. As a result of synergy and multiple iterations among various disciplines and utilization of integrated project teams, a reliable history matched dynamic reservoir model capable of future performance prediction for optimum asset management is constructed. Among many scenarios investigated, it is found that implementation of water injection schemes would provide optimum recovery mechanism for the Shang 741 Block field.

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