The Seligi field is the largest oil field in Peninsular Malaysia. Its largest reservoir, the J-18/60 which contains about 47 percent of the field's total original oil-in-place, has a relatively thin oil column (19 to 36 meters) overlain by multiple large gas caps and underlain by an active aquifer system. The sandstone thickness and reservoir quality vary across the field. Three other major oil-bearing reservoirs also have thin oil columns and gas caps. The J-18/60 is being produced via a combination of gas cap expansion and waterdrive mechanisms. Optimum recovery will depend upon proper balancing of crude withdrawals and gas injection. The production strategy is also complicated by the fact that the aquifer underlying the major J-18/60 reservoir is common to other fields which have been on production for several years.

This paper discusses: 1) the reservoir development planning of Seligi, which involved the development of a very large computer simulation model to assist in addressing the numerous complex factors that influence oil recovery and hence development decisions, 2) evaluation of horizontal wells to optimize recovery from the thin oil column and experience in drilling the first horizontal well in the field, and 3) challenges in facilities planning for development of the field.

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