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Fibre optic sensor technology is being increasingly used by the oil industry. Optical fibres can be permanently installed in a well, providing distributed real time temperature data at a one-metre resolution. This paper investigates the link between the temperature distribution in the well and the reservoir performance. A range of fine grid reservoir simulations have been examined to study the temperature changes in a production well over the course of field history, aiming to assess the potential value of accurate distributed well temperature data for management of reservoir waterfloods.