The main goal of this project is to develop an annular isolation system capable to withstand geothermal downhole conditions and mitigate the problems experienced by conventional packers in FORGE wells. This presentation outlines the work in rock modelling and interaction with the annular barrier, as part of the project management and planning phase of the project. More specifically, the lab-scale testing of the scaled annular barrier in rock blocks, as well as modelling and analysis of packer/rock interactions. This presentation focuses on the results of computing stress distribution on the wellbore wall (or casing) and the packer stress and deformation caused by applying high pressure in the interior of the packer.