Abstract
Abstract We study initial and boundary value problem for nonlinear three dimensional two phase nonlinear filtration problem in three dimensional bounded regions. The reservoir is a two phase and three dimensional oil-water system that is been implemented with typical parallelepiped model. The reservoir constructed with different number of grid blocks in x, y and z directions and initialized with initial pressure, water saturation, corresponding fluid and rock properties in every grid block. To find approximate solution of the above mentioned problem we use finite difference method. We form solution’s algorithm of inverse problem for numerical parameter identification of the petroleum reservoir.