Numerical PI＇s are used to relate wellblock and wellbore pressures and the flow rate of a well in reservoir simulations by finite differences. This approach is based on an ＇＇equivalent wellblock radius,＇＇ r(eq,o). When nonuniform grids are used, r(eq,o) may create an error in wellbore pressure or oil rate. This paper presents a new well representation. The analytical solution for near-well pressure is included by modifying the transmissibilities between gridblocks so that flow around a well is described fully. The new method is applicable to nonuniform grids and nonisolated wells.