Abstract: With relation of well-bore and grid-block pressure with any grid permeability parameters of formation (sensitivity coefficients of permeability field), we derived derivatives with respect to permeability for well indices. Numerical derivatives of well-bore pressure with respect to permeability of any grid with numerical solution of 3D fluid equation in porous media are given. Numerical calculation of sensitivity coefficients of permeability field for multi-well system is realized. Based on sensitivity coefficients, an inverse iterative equation is constructed by conjugate method. Numerical calculation for permeability parameters of formation is realized. It shows that:If permeability is uniform or block uniform, relative error of inverse permeability is less than one hundredth as inversely iterating 10 times. It is significant for dynamic simulation and examination of reservoir.

Key words: parameters of permeability, sensitivity coefficients, parameter inversions of formation permeability, dynamic simulation of reservoir