Application of Mixed Integer Linear Program in Optimization of#br#
Drilling Rig Mobilization

doi:10.11885/j.issn.1674-5086.2013.12.04.03

Abstract

Abstract:

Drilling operation is capital intensive in oilfield development，and drilling rig service fee makes up a major part in
drilling investment. Thus，to assist management in decision making and to improve IRR of the investment，a Mixed Integer
Linear Program（MILP）is proposed to optimize drilling rig mobilization in the development of Halfaya Oilfield in Iraq. Instead
of scheduling rig mobilization for each individual year，the MILP integrates information of the entire development period to
make mobilization plan throughout the whole period. Given the scope of work specified in development plan，the MILP searches
for the optimal solution，namely，the numbers of drilling rigs of each type needed every year，with the objective of minimizing
total cost and meeting annual workload. As expected，the optimal solutions evolve and the objective function improves as
more information is taken into account. In addition，the MILP is adaptive and works well in dynamic setting，such as varying
length of development period and workloads. The paper first introduces linear programming to drilling rig mobilization and
will extend applications of operation research techniques in oil and gas industry.

Key words: mixed integer linear program, optimization, drilling rig service fee, drilling rigs mobilization, Halfaya Oilfield
Iraq

CLC Number:

TE29

LIU Ang*, XIE Gang, OU Jin. Application of Mixed Integer Linear Program in Optimization of#br# Drilling Rig Mobilization[J]. 西南石油大学学报(自然科学版), DOI: 10.11885/j.issn.1674-5086.2013.12.04.03.

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Application of Mixed Integer Linear Program in Optimization of#br# Drilling Rig Mobilization

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