An optimization method for incorporating dynamic data into reservoir modell
ing is presented. It integrates a very typical feature of the zonation appr
oach that is based upon dividing the reservoir model into subregions. Solvi
ng the optimization problem consists of adjusting the subregion pattern so
that the reservoir model duplicates the observed dynamic behaviour. Unlike
the traditional approach, permeabilities in subregions are not constant, bu
t show spatial variations. A variogram model that is the same for all the s
ubregions describes this variability. The suggested method allows for optim
ization of permeability distributions within the subregions while preservin
g the second-order statistics for the whole reservoir model as well as the
spatial continuity between subregions. It remains as flexible as the tradit
ional zonation approach although it can handle complex structures.