In the Middle East, there remain many technical challenges in the water saturation evaluation of carbonate rocks and the effective identification of reservoir fluid properties. The traditional Archie equation is not applicable to carbonate reservoirs with complex pore structures and varying reservoir space distribution, as there are obvious “non-Archie” phenomena. In this paper, by analyzing the experimental data on the rock resistivity of the target formation in the study area and analyzing the relationship between stratigraphic factors and porosity, the previous fitting method was modified as a result of using the actual data while avoiding the cementation index as a way to improve Archie’s formula to evaluate the water saturation. Based on the improved Archie formula, the mathematical differential operation of water saturation and porosity was carried out using the formation resistivity. The calculation results of irreducible water saturation were used to calibrate the oil layer, and the water layer was calibrated when the water saturation was 100%, allowing for a novel reservoir fluid property identification method. This total differential method can effectively identify the oil-down-to (ODT) and water-up-to (WUT) levels in an oil−water system and then accurately divide the transition zone of the oil−water layer. When this method was applied, the identification results were in good agreement with production conclusions and test data with an accuracy rate of 89.95%. Although the use of geophysical logging data from open-hole wells combined with the total differential method is only applicable to wells with similar logging time and production time, it is possible to compare geophysical logging data from different periods to construct oil−water profiles to observe the changes in ODT over time to guide development and adjust production plans. The proposed reservoir fluid property identification method and the improved water saturation calculation formula can meet the requirements of water saturation evaluation in the target block with low calculation cost and easy implementation, which provides a new method for water saturation evaluation and rapid identification of reservoir fluid properties.