Oil reservoirs are usually consist of hydrocarbons (oil and gas) and bottom water. The natural depletion of the reservoir occurs by the natural energy of the reservoir. Reservoirs pressures are usually high in the beginning and this will transmit the fl uid from the reservoir to the surface. However, after some time of production, when the reservoir pressure falls down, water comes into the formation and starts to produce through the wellbore. This happens because of the disturbance in gravitational force in the reservoir, which results in water production along with oil. Reducing well productivity, water separation and handling, corrosion and environmental issues are the major challenges associated with water coning phenomena. In this study, the black oil model of ECLIPSE software was used to study the water coning issue in an oil reservoir. Different production plans were studied and their effect on water coning was investigated. In addition, the best production plan was introduced using simulation results. The simulation results showed that pressure draw down in the reservoir decreased with decreasing oil production rate, which inherently decreases the water production rate. Moreover, the simulation results showed that oil recovery factor can be increased signifi cantly by decreasing the amount of water production.