This paper describes a new method for selection of well spacing and production rate for an oil field. We express net present value (NPV) as function of well spacing and the production rate. Then we use partial derivatives of this function in order to find the maximum NPV. The equations for partial derivatives are solved numerically. We illustrate an application of our method with examples of Western Siberian oil fields.

Keywords:
production monitoring, field development optimization and planning, oil field, production control, asset and portfolio management, infrastructure, artificial intelligence, drilling rate, reservoir surveillance, upstream oil & gas
Subjects:
Well & Reservoir Surveillance and Monitoring, Asset and Portfolio Management, Field development optimization and planning
Copyright 2012, Society of Petroleum Engineers
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