Vertical equilibrium (VE) is the assumption that equilibrium is established in a cell in
a time short compared to that characteristic of horizontal flows. This implies that the
phase hydrostatic potential is independent of depth within a cell. In the absence of
capillary pressure effects, the saturation distribution is then a step function depending
on the fluid contact depths. This saturation distribution is taken account of when
ECLIPSE calculates relative permeability values for the cell faces.
An option exists in the ECLIPSE VE implementation that enables you to specify the
fractions of distributed and segregated saturation distribution functions which are to
be used.