Abstract: For high efficient development of hydrocarbon reservoir in Shahejie formation of Chenghai oilfield, based on laboratory test, well logging, well testing and production test data, the phase behavior characteristic of crude is analyzed, and then the development mode, well spacing, well type, injection-production well pattern of the high shrinkage oil reservoir is demonstrated. It is adopted that the reservoir development efficiency is higher by 300 m well spacing, 600 m horizontal section and north-east injectionproduction well array through early synchronous water flooding rather than by later stage water flooding. Based on the optimization of different well pattern, the horizontal well for production and directional well for water flooding is suitable for reservoir characteristics, and the development index is better than prediction. After implementation, the initial production of new well in this oilfield exceeded the program design, and the oilfield development results are very good.