Scaleup techniques are commonly used to coarsen detailed geological models
to scales more appropriate for reservoir simulation. These techniques typic
ally generate upscaled permeabilities through solution of the local pressur
e equation, subject to some type of linear boundary condition. In the near-
well region, coarse scale permeabilities computed in this manner may not ad
equately capture key features of the fine scale how. In this article, we pr
esent a general method for computing accurate coarse scale wellblock transm
issibilities and well indexes for vertical wells in two and three dimension
s. The method is based on the solution of local well-driven flow problems s
ubject to generic boundary conditions. Simulation results for two-dimension
al systems indicate that the near-well treatment always provides improved p
redictions compared to those obtained using standard methods. In some param
eter ranges, this improvement is quite substantial. Several three-dimension
al models with vertical wells are also considered and improvement relative
to the standard approach is achieved in all cases. Extension of the method
to accommodate more general well configurations could result in significant
ly improved coarse scale simulations of nonconventional wells.