Abstract: Kendong area lies in Bohai segment of Tancheng-Lujiang fault zone (TLF). Its form, evolvement, geologic character and hydrocarbon stratification are dominated by TLF. The faults of Kendong area is en echelon fracture taking on NE and NNE. The extensional movement of Paleogene Period formed faulted basin in Kendong area, and developed uppermost source rock. Dominated by TLF, Kendong area can be divided into three zones by structural dissimilarity:the west principal part, the north incline part and the east incline part. Be affected by geologic movement, Kendong area have six stratums:Nm, Ng, Ed, Es, Mz, Pz. In all geologic characters, low-heave pattern, Neogene structural movement and extended drape structure affect hydrocarbon migration and stratification