Key words: field development optimization, well spacing, production rate.
This paper describes a new method for selection of well spacing and production rate for an oil field. We express net present value as function of well spacing and the production rate. Then we introduce dimensionless parameters that describe optimal well spacing and production rate. Analysis of optimal development parameters shows the effect of the discount rate on the parameters of development. We reveal that overestimation of discounting factor potentially leads to incorrect technical decisions. We illustrate an application of our method with examples of Western Siberia and Yamal oil fields.
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