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A large volume of publications have been available in the literature showing the benefit of horizontal wells in relatively heterogeneous reservoirs. However, a lack of attention is given to show the advantages for improving production performance in multilayer reservoirs and reservoirs that contain discontinuous shale. Many Indonesian oil reservoirs are such kind. The present study investigates the effects of vertical discontinuity in inflow performance of a horizontal well and also presents methods to forecast the oil production. These can help engineers in screening application of a horizontal well for non-homogeneous reservoirs. The major conclusions are that a horizontal well should be placed in the most permeable layer of a multilayer system, productivity decreases markedly with increasing shale density, and breakthrough time increases as effective vertical permeability decreases. Detailed results are presented and discussed.
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