Upscaling reservoir simulation models in an appropriate manner is important for any well test interpretation workflow which involves numerical reservoir simulation. Approaches based on steady-state flow behaviour are not necessarily optimal when trying to capture the details of pressure transient phenomena. This study proposes a new layer aggregation strategy which forms a weighted sum of the permeability differences between cells in neighbouring layers. The weighting uses a kernel function (G) presented by Oliver (1990). This approach was successfully applied in four upscaling experiments using a permeability distribution based on the Tarbert formation. These cases included a standard well test, an interference test and a test from a partially penetrating well. The results showed that coarsened models with as few as five layers can reproduce the pressure transient behaviour of a twenty layer fine grid model.


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