When simulating the performance of intelligent well systems, the reliability aspect of the installed components is often ignored. In some cases, the components are assumed to be fully functional throughout the simulated life of the well or asset. However, for some assets, component reliability within the active period is a critical part of the overall intelligent well decision making process. This dictates whether or not the system delivers the promised value.

This paper describes a method of evaluating and quantifying the reliability of intelligent well systems based on historical data, installed components and number of zones. It then provides an approach for integrating the estimated reliability data with well performance in reservoir simulation. This integration enables the reservoir engineer to assess the time- dependent impact of the success/failure of the system on the estimated value of using the technology.

The authors presented an application of the proposed methodology to a 2-zone intelligent well system. The analysis was used to identify the downhole valve's active period and thereafter recommend a system with robust reliability data that will ensure that estimated potential value from the technology is realized. The analysis also provided insight into the impact of system failure on well recovery at different time periods.

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