Near-well effects can have a strong impact on reservoir flow. Current reservoir modeling practice often uses coarse-scale flow simulation models, which may lead to biased results, compared with fine-scale models. In this work, we extend and apply a recently developed near-well multiphase flow upscaling technique to the coarse-scale simulation of heavy-oil primary production. For heavy oils, oil viscosity is a strong function of pressure when the pressure is below the bubble point. Therefore, the upscaled mobility functions (from near-well multiphase upscaling) depend on both pressure and saturation, which cannot be directly input to general purpose reservoir simulators. This is very different than the upscaled mobility functions for typical black-oil fluids, in which oil viscosity does not vary significantly with pressure. Accordingly, the upscaled mobility functions are often equivalent to upscaled relative permeabilities (as functions of saturation only). In this work, we develop two procedures to derive either the upscaled relative permeability or viscosity functions from the phase mobility functions, thus decoupling the dependency on pressure and saturation. It is found that the upscaled oil viscosity provides more accurate predictions than the upscaled relative permeabilities, especially at early time. This is because that the rapid change of pressure at early stage is captured sufficiently in the upscaled oil viscosity (as a function of pressure). The use of upscaled viscosity function in multiphase upscaling is new, and has not been presented in previous studies. We also introduce a grouping technique to reduce the number of upscaled flow functions in coarse-scale models. This is based on an observation that there is a strong correlation between the upscaled flow functions and the coarse-scale well-block permeabilities. The proposed methods are applied to realistic models from heavy-oil fields. For cases considered, the nearwell multiphase flow upscaling considerably improves upon the standard coarse models. The use of upscaled relative permeability and viscosity functions, as well as the grouping of upscaled flow functions, provides practical applicability for fast and accurate forecast using coarse-scale models.