Waterflooding Optimization Under Constraints on Oil and Gas Reservoir Using Modified NPV Gradient

Abstract

In this article, we present a production optimization strategy for a reservoir which has both oil and gas production. To perform such production optimization, we maximize the Net Present Value (NPV) with a sequence of short-term optimization of a Modified NPV. The search for the optimal solution is made through a Stochastic Simplex Approximated Gradient. This strategy of breaking the global optimization into a sequence local optimization makes the computational cost increases linearly with the time instead of exponentially as the global optimization problem does. Other advantages of the technique are a significant increase in NPV, and a strong cash flow on the beginning of reservoir production life.