Tengiz field is one of the largest oil fields in the world. Reservoir is an isolated carbonate structure of a big area and big thickness. High heterogeneity caused by complex heterogenic and structural history of reservoir rises many uncertainties and makes characterization of reservoir extremely complicated. This fact alongside with big area and high hydrocarbon column of reservoir may make some of reservoir characterization techniques less effective. In this work was examined application of alternative Hydraulic Flow Units technique of distribution of permeability values for model. HFU technique divides reservoir to discrete units, which have lateral continuity and confirm lithological and facial heterogeneity of reservoir. This technique compared with classic porosity vs permeability correlations. Application of different permeability models were examined and compared through its effect on history matching of bottom hole pressures of Tengiz field simulation model. Additionally, was examined performance of two hydrodynamic simulators (E300 and Intersect) at conditions of big number of cells and high heterogeneity of reservoir.