Optimization of subsea investments: A combined investment and production strategy problem solved by combining optimization and simulation
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Petroleum is one of our most valued resources, and our industrial civilization heavily relies on it. To meet the demand for petroleum, provide the highest economic contribution to the society and still comply with the environmental restrictions it is important that the petroleum is produced in an efficient manner. Among the new technologies introduced the later years are subsea water separators and boosters. If or when to install such technology and how it should be designed to maximize the net present value of a reservoir are not trivial questions. A mathematical model and solution methods to solve these models to optimality are presented. While the currently used solution methods are based on fixed production rates for each well, this thesis introduces dynamics in the reservoir and production network through simulator. This dynamic approach expands the problem to include the production strategy, which complicates the problem. Through a case study the value of the new dynamic approach is proven to be considerably higher than the currently used approach. This might defend the increased computational costs needed to solve the problem.