Horizontal wells are becoming a very important component in the thermal recovery of heavy oil reservoirs. The success of a cyclic steam injection project depends strongly on the selection of key parameters, such as cycle length and amount of steam injected. The numerical simulation of horizontal wells, especially under non-isothermal conditions, is computationally demanding. When optimization is combined with numerical simulation, the computing time requirement may be prohibitive and it is not guaranteed that the optimal conditions will be found.

In this research, a new methodology has been developed for optimizing the cyclic steam injection process for vertical and horizontal wells. The procedure integrates oil production characterization using numerical simulation, net present value maximization through a Quasi-Newton method, and model validation/tuning. The three-stage procedure provides the optimum number and/or duration of cycles, the optimal amounts of steam to be injected in each cycle and the optimal value of the overall economic indicator.

The optimization algorithm was successfully validated with published results obtained from the discrete maximum principle. The methodology was then applied to determine the optimal conditions of cyclic steam injection for a horizontal well located in Bachaquero field, Venezuela.

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