Simulating automated action of smart well components represents a challenge in forecasting performance of such wells, which is fundamental in their design decisions. For example, wells equipped with Inflow Control Valves (ICV) where zones have to be switched on, off or partially closed based on their performance relative to the rest of the wells/completions in the field which share the same surface network and facilities constraints.

In this paper we present a study that has been carried out to justify installation of a surface controlled ICV in a group of wells in an off-shore Australian field with commingled production. The merit of surface controlled ICV versus uncontrolled commingled production has been compared. A numerical reservoir simulator has been used to model reservoir performance and production from individual zones. Also, well and production network has been simulated using a well and Production Network Flow Simulators. An interface "simulation manager" is used to facilitate information exchange between the two simulation programs and optimization of the process. Proper control of ICVs is simulated based on reservoir and well-bore simulation data which will result in maximum oil production of field network system resulting in higher recovery. Also, we have done typical economic analysis for smart well completion implementation. The results show that smart completion is viable for this field.

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