Technical Report ERGO 11-018

Oil production optimization solved by piecewise linearization in a branch & price framework
Vidar Gunnerud, Bjarne A. Foss, Ken I.M. McKinnon and Bjørn Nygreen

Abstract:

This paper presents a method for optimizing oil production on large scale production networks such as the Troll west field in the North Sea. The method is based on piecewise linearization of all non-linearities, and on decomposition of the full scale problem into smaller sub-problems. Column generation in a Branch & Price framework is used to solve the decomposed problem. The methods differs from most Branch & Price methods by branching only on continuous quantities and by solving the subproblems using commercial MILP software.

The method is applied to a realistic model of an oil field, the Troll oil and gas field at the Norwegian Continental Shelf, a petroleum asset with severe production optimization challenges due to rate dependent gas-coning wells. This study shows that the method is capable of solving instances of practical size to proven optimality.

Keywords:

Oil production planning, oil rim reservoir, mixed integer linear programming, column generation, branch & price

Download:

ERGO-11-018.pdf

Status:

Published in Computers and Operations Research