Reliable predictive models for hydrocarbon production in the high cost Norwegian Offshore have required the development and application to full field simulation of a range of improved 3D geological reservoir modelling techniques. The authors' philosophy for reservoir modelling is outlined and attention focused on the acquisition of the correct type of data, understanding their frequently large inherent uncertainties, and the use of stochastic geological modelling, which, if handling advanced geological concepts and analogue data, enable a proper investigation of the effects of reservoir heterogeneity on fluid flow. Quicker and more trustworthy history matching and 'repairs' of models are made possible. There are challenges to be faced within areas such as geological concepts, estimation of Sw, Sor, and permeability, upscaling, ranking of realizations, the use of 3D seismic to determine lithological and fluid compositions and the conditioning of stochastic models using seismic attributes, well test and production data.

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