Optimal producer well placement and production planning in an oil reservoir

•MINLP model for simultaneous well placement and production planning in an oil reservoir with water injection.•To our knowledge, the first mathematical programming model to embed rigorous subsurface multiphase flow dynamics.•Our model gives new/infill producer wells, their locations, and production/injection rates of all wells.•Enhanced outer-approximation algorithm (Grossmann and co-workers) for this complex, dynamic, and nonconvex MINLP.