Most compositional models described in the literature use explicit transmissibilities.
Because of the complexity of the equations and the use of a large number of components, the explicit formulation has been the only feasible approach to field-scale simulation. The drawback of the explicit formulation is the severe time step size limitation which excludes its application in single well models that are used to study productivity impairment as a result of condensate dropout around the well. Some attempts have been made to develop a fully-implicit equation of state model. However, the application of such a model has been restricted to very small problems because of the prohibitive cost associated with it. We present a novel highly efficient approach to the discretization and solution of the flow and thermodynamic equations describing multicomponent fluid flow in a porous medium.