A computer-implemented method for simulating fluid flow in a fractured reservoir comprising: generating a hybrid grid model (HG model) by generating a grid for a fractured reservoir model comprising a fracture and a matrix to obtain a generated grid; combining the hybrid grid model with a cross flow equilibrium model to generate a hybrid grid-cross flow equilibrium model (HG-CFE model), wherein combining comprises: selecting a volume expansion parameter for a plurality of cross flow equilibrium elements of the fractured reservoir model, wherein the volume expansion parameter comprises the amount by which a fracture is expanded to include surrounding matrix elements on the grid; generating the plurality of cross-flow equilibrium elements based on the generated grid and the volume expansion parameter, the plurality of cross flow equilibrium elements comprising a plurality of physical properties, wherein generating the plurality of cross-flow equilibrium elements further comprises artificially expanding the size of a fracture to include a portion of the surrounding matrix elements along the length of the fracture to create larger cross flow equilibrium elements corresponding to larger control volumes for the fracture; using a finite volume simulator to perform a sensitivity analysis with respect to a relative permeability of the fracture to calculate flow from the expanded fracture to the matrix; correcting inaccuracies as compared to real behaviour by calibrating fluid saturations in the fracture by scaling a relative permeability in the fracture with critical oil saturation equal to 1-1 / PoreVolumeMultiplier; calculating, using the plurality of cross-flow equilibrium elements, a plurality of pore volume and transmissibility multipliers; simulating, using the HG-CFE model, a fluid flow in the fractured reservoir model by using the plurality of pore volume and transmissibility multipliers and a fracture relative permeability curve to obtain a result, wherein the fluid flow is calculated for the plurality of cross flow equilibrium elements; and outputting the simulation results for use in generating control signals for oilfield equipment. generating a hybrid grid model (HG model) by generating a grid for a fractured reservoir model comprising a fracture and a matrix to obtain a generated grid; combining the hybrid grid model with a cross flow equilibrium model to generate a hybrid grid-cross flow equilibrium model (HG-CFE model), wherein combining comprises: selecting a volume expansion parameter for a plurality of cross flow equilibrium elements of the fractured reservoir model, wherein the volume expansion parameter comprises the amount by which a fracture is expanded to include surrounding matrix elements on the grid; generating the plurality of cross-flow equilibrium elements based on the generated grid and the volume expansion parameter, the plurality of cross flow equilibrium elements comprising a plurality of physical properties, wherein generating the plurality of cross-flow equilibrium elements further comprises artificially expanding the size of a fracture to include a portion of the surrounding matrix elements along the length of the fracture to create larger cross flow equilibrium elements corresponding to larger control volumes for the fracture; using a finite volume simulator to perform a sensitivity analysis with respect to a relative permeability of the fracture to calculate flow from the expanded fracture to the matrix; correcting inaccuracies as compared to real behaviour by calibrating fluid saturations in the fracture by scaling a relative permeability in the fracture with critical oil saturation equal to 1-1 / PoreVolumeMultiplier; calculating, using the plurality of cross-flow equilibrium elements, a plurality of pore volume and transmissibility multipliers; selecting a volume expansion parameter for a plurality of cross flow equilibrium elements of the fractured reservoir model, wherein the volume expansion parameter comprises the amount by which a fracture is expanded to include surrounding matrix elements on the grid; generating the plurality of cross-flow equilibrium elements based on the generated grid and the volume expansion parameter, the plurality of cross flow equilibrium elements comprising a plurality of physical properties, wherein generating the plurality of cross-flow equilibrium elements further comprises artificially expanding the size of a fracture to include a portion of the surrounding matrix elements along the length of the fracture to create larger cross flow equilibrium elements corresponding to larger control volumes for the fracture; using a finite volume simulator to perform a sensitivity analysis with respect to a relative permeability of the fracture to calculate flow from the expanded fracture to the matrix; correcting inaccuracies as compared to real behaviour by calibrating fluid saturations in the fracture by scaling a relative permeability in the fracture with critical oil saturation equal to 1-1 / PoreVolumeMultiplier; calculating, using the plurality of cross-flow equilibrium elements, a plurality of pore volume and transmissibility multipliers; simulating, using the HG-CFE model, a fluid flow in the fractured reservoir model by using the plurality of pore volume and transmissibility multipliers and a fracture relative permeability curve to obtain a result, wherein the fluid flow is calculated for the plurality of cross flow equilibrium elements; and outputting the simulation results for use in generating control signals for oilfield equipment.