This paper presents the findings of laboratory studies of rheological properties and oil displacing ability of aqueous solutions of technical grade lignosulfonate done on the sand packed tube models. The solutions containing lignosulfonate can be useful as displacement agents in development of watered reservoirs with heterogeneous porosity and permeability. When used at high concentrations, technical grade lignosulfonate can achieve selective shut-off while maintaining the reservoir pressure. The oil displacement efficiency is improved by means of redistributing the flows and selective isolation of high-permeability zones. The use of such compositions allows increasing the sweep of low-permeability reservoir zones by created pressure differential and displacing the residual oil.