Reservoir simulation is one of the core courses in the petroleum engineering curriculum and it requires knowledge and skills in three major disciplines, namely programming, numerical methods and reservoir engineering. However, there were often gaps in the students' readiness to undertake the course, even after completing the necessary requirements. The disparate levels of competency of the good and poor students made it difficult to target a certain level. Cooperative learning in the form of projects and peer teaching was designed to address the major concern of disparate entry skills, and at the same time the method used should also succeed in keeping students interest in class, developing communication skills and improving self-learning. Slower and weaker students were expected to benefit from being taught by good students, who were better prepared, and good students would gain deeper comprehension of the subject matter. From evaluations, the approach was considered successful since the overall passing rate was greater than 95% compared to previous years of around 70-80%. It had also succeeded in improving the learning environment in class. Future simulation classes will continue to use the cooperative approach with minor adjustments.