A rigorous stochastic coupling of reliability and reservoir performance when defining the value of intelligent wells

Long term equipment reliability frequently controls the Value created by Intelligent Well Technology. One of the barriers to intelligent well deployment is the inability to properly quantify Value terms of the loss of the intelligent system's ability to function properly to achieve the required reservoir or well management objectives. Recent publicised deterministic value calculation of intelligent wells does not permit proper decision making as this workflow frequently underestimates the potential value. In this paper we show a general methodology where a full stochastic reservoir reserve evaluation is coupled to a stochastic (Monte Carlo) reliability analysis of the I-well performance. This value creation is defined on the basis of a realistic mission reliability profiles for a conventional and an intelligent well. The detailed methodology has been tested by modelling the production from a conventional and intelligent completion deployed in a typical North Sea fluvial type reservoir. This new approach to value determination provides the information that forms the basis of a cost-effective, completion design. Copyright 2007, Society of Petroleum Engineers.