Chemical enhanced oil recovery by surfactant–polymer (SP) flooding has been studied in two space dimensions. A new global pressure for incompressible, immiscible, multicomponent two-phase porous media flow has been derived in the context of SP flooding. This has been used to formulate a system of flow equations that incorporates the effect of capillary pressure and also the effect of polymer and surfactant on viscosity, interfacial tension and relative permeabilities of the two phases. The coupled system of equations for pressure, water saturation, polymer concentration and surfactant concentration has been solved using a new hybrid method in which the elliptic global pressure equation is solved using a discontinuous finite element method and the transport equations for water saturation and concentrations of the components are solved by a Modified Method Of Characteristics (MMOC) in the multicomponent setting. Numerical simulations have been performed to validate the method, both qualitatively and quantitatively, and to evaluate the relative performance of the various flooding schemes for several different heterogeneous reservoirs.