Accurate numerical modeling of multiphase flow in subsurface oil and gas reservoirs is critical for optimizing hydrocarbon recovery. However, traditional physics-based algorithms face substantial computational hurdles due to the need for fine grid resolution and the inherent geological heterogeneity. To overcome these challenges, data-driven surrogate models solving the flow governing partial differential equations (PDEs) offer a promising alternative to enhance the efficiency of hydrocarbon production operations. In this study, we employ the Fourier Neural Operator (FNO) to extract spectral information from the reservoir properties, thereby facilitating the solution of coupled porous flow PDEs. Our focus is on two-phase flow dynamics, specifically exploring how water injection enhances reservoir pressure and displaces oil. This scenario involves solving a set of nonlinearly coupled PDEs with highly heterogeneous coefficients. Numerical results demonstrate that the developed FNO accurately predicts the reservoir pressure distributions. We further observe that the FNO's zero-shot super-resolution capability is sensitive to abrupt local changes in the reservoir pressure near injection and production wells. To enhance its accuracy, we propose a multi-fidelity FNO model that exhibits better adaptability across various grid configurations. After moderate training on graphics processing units (GPUs), the FNO achieves a speedup of three orders of magnitude compared to traditional numerical PDE solvers. Our experiments confirm the FNO's potential to replace repetitive physics-based simulations, significantly advancing computational efficiency in the uncertainty quantification of reservoir performance.