Reservoir compaction in deep water, unconsolidated, turbidite reservoirs can cause large-scale permeability damage to nearwellbore area, the resulting skin reducing the well productivity. This is due to the depleting reservoir pressure resulting on an increased effective stress on the fabric of the reservoir rock leading to a reduction in both permeability and porosity. Permeability reduction will decrease recovery while porosity reduction will improve recovery by maintaining the fluid pressure & increasing the oil saturation. The interplay of these phenomena was studied using a reservoir simulation model of a typical deepwater, compacting, compartmentalized layered reservoir. Eighteen months production experience was available for history matching. This paper will show how the above understanding can be used to optimize the well performance and explain "unusual" production performance observations e.g. a decreased water cut was predicted if water injection was implemented.

This study reviews the potential value creation through development of a compacting reservoirs using Intelligent Well Technology (IWT) compared to a conventional well development. IWT offers great flexibility to monitor, operate and control production at the Zone and Reservoir level. This led us to examine whether the draw down around the wellbore could be optimized so that permeability damage is minimized as a means of increasing recovery in compacting reservoirs.

This paper shows how evaluation of I-well value generation has to combine the traditional reservoir engineering studies of well location and pressure maintenance while simultaneously optimizing the details of the well completion design and the newer technologies associated with managing compacting reservoirs. A doubling of the field reserves was predicted by completing the new well with IWT. IWT also effectively managed non-optimum situations e.g. placement of the well in the incorrect location.

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