Abstract: Correctly recognizing the flowing rules of fractured reservoir is the foundation of high development efficiency. Discrete
fracture model has become a research hot spot，because it can explicitly simplify fracture by using reduction dimensional
method，which can greatly improve computing efficiency of the numerical simulation. Finite volume method has a clear physical
meaning in every control volume，and can ensure local mass conservation strictly，so it is appropriate for the situation of
discontinuous flow field. In this paper，we use the median dual of Delaunay triangular mesh to control the volume cell，establish
the numerical computational scheme of discrete fracture model，study on oil-water two phase numerical simulation of discrete
fracture model，and verify the correctness and efficiency of theory and algorithms through examples. The results show that this
method can ensure local mass conservation strictly，and the convergence is better in the process of the calculation. It is well
suitable for fractured reservoir simulation，and has very good consistency with single porous medium model，the computing
efficiency improved 2.5∼3.0 times.

Key words: fractured reservoir, finite volume method, discrete fracture model, two-phase flow, numerical simulation