Upscaling reservoir properties for reservoir simulation is one of the most important steps in the workflow for building reservoir models. Upscaling allows taking high-resolution geostatistical models (10 7 -10 8 grid blocks) to coarse scale models (10 4 -10 5 grid blocks), manageable for reservoir simulation, while retaining the geological realism and thus effectively representing fluid transport in the reservoir 1,2 . This work presents a study of the effectiveness of different available techniques for permeability upscaling and the implementation of a new technique for upscaling of relative permeability curves based on the numerical solution of a two-phase system and the Kyte and Berry method 3 .The reference fine scale model considered in this study is a conceptual fluvial reservoir based on the Stanford V model 4 . The reference fine scale isotropic and locally heterogeneous permeability distribution was upscaled to different upscaling ratios by means of analytical (static) and numerical single-phase (pressure solver, dynamic) techniques. Two-phase flow simulations were performed on the reference fine grid and upscaled models using a comercial black-oil simulator. Arithmetic, harmonic, and geometric averages were defined for static upscaling of the permeability distribution. The dynamic upscaling process considered one-phase and two-phase upscaling. One-phase upscaling considered upscaling of the permeability distribution and two-phase upscaling considered upscaling of the permeability distribution and relative permeability curves.Flow simulation results for waterflooding in the coarse scale model indicated relevant discrepancies with the fine grid re-sults. Compared to fine-scale, flow results of the single-phase upscaling process indicated that the coarsest upscaled models did not match the water breakthrough times, water cut values, or well pressures from the reference model. The finer upscaled models reproduced the reference results more accurately than the coarser models. The two-phase dynamic upscaling technique implemented in this work resulted in the best match with the flow simulation results of the fine grid model. Results show that the most accurate upscaling scheme should be defined using the two-phase dynamic upscaling technique on the model with the smallest upscaling ratio. fax 01-972-952-9435.U.
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