Oil reservoir production optimization using optimal control

Practical oil reservoir management involves solution of large-scale constrained optimal control problems. In this paper we present a numerical method for solution of large-scale constrained optimal control problems. The method is a single-shooting method that computes the gradients using the adjoint method. We use an Explicit Singly Diagonally Implicit Runge-Kutta (ESDIRK) method for the integration and a quasi-Newton Sequential Quadratic Programming (SQP) algorithm for the constrained optimization. We use this algorithm in a numerical case study to optimize the production of oil from an oil reservoir using water flooding and smart well technology. Compared to the uncontrolled case, the optimal operation increases the Net Present Value of the oil field by 10%.