Recently, the hydrate-bearing sand reservoirs were founded with high saturation in the offshore India by the National Gas Hydrate Program Expedition 02 (NGHP-02). Based on the detailed geological data at the NGHP-02-16 site, a more realistic reservoir model is constructed to analyze the unique multiphase flow and hydrate phase change behaviors from the geologically descriptive hydrate reservoirs. The main goals of this work are to optimize the adjustable production parameters and to predict the long-term gas production performance for guiding the upcoming field hydrate production test in India. The results indicate that gas production rates increase, but water production rates decrease slowly with time from the heterogeneous hydrate-reservoir. This is completely different from the previous prediction of multiphase flow behavior based on homogeneous hydrate-reservoir models. A non-uniform hydrate dissociation front is formed in the hydrate-reservoir due to the reservoir heterogeneity promote the horizontal dissociation of solid-hydrate within the high permeability sand layers. The maximum distance of free gas zone expands to outside more than 500 m from the production well. This indicates that the field fault system should be carefully concerned during the long-term production. Sensitivity analysis results suggest that the complete perforation in the hydrate-bearing layer and the underlying water saturated layer is beneficial for improving the hydrate production performance. Over the 5 years depressurization, a total of 2.08 × 107 ST m3 methane gas can be produced using the recommended well placement. The average gas-to-water ratio and energy ratio reach 10.22 ST m3 CH4/m3 H2O and 30.14, respectively, showing a high gas production potential from this hydrate site.