Luliang oilfield has been in production since 2001 and was originally developed from vertical wells. To arrest production decline, operators embarked on a horizontal drilling campaign in 2006 to achieve ultimate field recovery from remaining oil. A proper geosolution to optimize reservoir exposure while maximizing distance from bottom and edge-water was recognized as the key for success in this field.

From 2006 to 2015, the 10 years of field development was sustained through a close collaboration between the operator and service provider. However, production reviews indicate that the Luliang oilfield is approaching the end of its field life as the main underground reserve is drained away. As this mature oilfield becomes increasingly difficult to develop, well placement technologies become increasingly critical along with the commitment to service quality. With the challenge increasing, the well placement strategy and solutions must be reformed as well. Innovative use of well placement technology and workflows are crucial to ensure service quality while balancing drilling costs within the margin of economics.

From 2006 to 2014, a total of 200 horizontal wells were successfully constructed, achieving net-to-gross over 94% and improving the field's recovery efficiency by over 96%. Both productivity and cumulative production of horizontal wells were significantly enhanced compared to the original objectives. In 2015, 14 horizontal wells are on going; thus, after 10 years, the extension of this mature field's vitality continuous to press on.

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