This dissertation consists of two parts. The first part provides the background theory for the papers included in the second part. The background theory in Part I is structured as follows. First, the motivation and scope of this thesis are given in Chapter 1. Next, different properties and concepts of flow in a reservoir and the applications polymer flooding and CO 2 sequestration are introduced. The governing equations for two-phase flow and the mentioned applications are derived in Chapter 2. These equations are on the general form of hyperbolic conservation laws. General theory and background on this class of equations are given in Chapter 3. In Chapter 4 a general framework for solving hyperbolic conservation laws numerically is presented, with focus on the numerical schemes used in the included papers. Finally, in Chapter 5 the included papers found in Part II are summarized and discussed.