Abstract Pore-scale physics, laboratory investigations, and field experience, dictate that three-phase relative permeabilities exhibit strong dependence on the saturation path and the saturation history. Such dependence is especially relevant in immiscible wateralternating-gas (WAG) processes, which are characterized by a sequence of three-phase drainage and imbibition cycles. In this paper, we study the influence of relative permeability hysteresis on the field-scale predictions of WAG injection. Because their measurement is difficult and time-consuming, three-phase relative permeabilities are usually interpolated from two-phase data. The errors associated with this procedure have been investigated by Oak (SPE 20183), who reported that int...