Dynamic two-fluid models have found a wide range of application in the simulation of two-phase-flow systems, particularly for the analysis of steam/water flow in the core of a nuclear reactor. Until quite recently, however, very few attempts have been made to use such models in the simulation of two-phase oil and gas flow in pipelines. This paper presents a dynamic two-fluid model, OLGA, in detail, stressing the basic equations and the two-fluid models applied. Predictions of steady-state pressure drop, liquid hold-up, and flow-regime transitions are compared with data from the SINTEF Two-Phase Flow Laboratory and from the literature. Comparisons with evaluated field data are also presented.