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P12 AN ITERATIVE METHOD FOR THE REPRESENTATION OF TWO-PHASE FAULT ROCK PROPERTIES IN RESERVOIR SIMULATORS Abstract 1 It is common practice to account for the effect of faults on fluid flow in production simulation models using transmissibility multipliers. Invariably the multiphase properties of faults are neglected although it is now becoming increasingly accepted that incorporating the multi-phase behaviour of faults into simulation models may sometimes be important (Al-Busafi et al. 2005). It has been proposed that dynamic pseudo-relative permeabilities and pseudo-capillary pressures should be used instead of transmissibility multipliers to retain the multiphase information from the small scale in a