During the lifecycle of an oilfield
project, well development is
a critical phase due to intensive investments required for capital
cost. Determining whether it is economical to develop an oilfield
or not and finding the best plan for field development are the main
concerns in this field of study. Drainage area development and production
planning are crucial in a steam assisted gravity drainage (SAGD) project
of the oil sand industry. In this study, an optimization framework
for planning the development of SAGD drainage areas under uncertainty
is presented. The proposed framework includes the following two major
elements. First, a mixed integer optimization model is developed to
arrange the multiperiod development plan of the drainage areas with
consideration of capital and steam allocation restrictions. Second,
uncertainties in crude oil price and reservoir production are investigated
based on a multistage stochastic programming model. The results demonstrate
that the method can effectively generate an economically optimal development
plan that maximizes the profit.