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The Dongying depression, located in the northern part of the jiyang Sag in the Buohaiwan Basin, comprises one of the major oil-producing bases of the Shengli oil-field. The prediction and exploration of subtle or litho1ogical oil traps in the oil-field has become the major confronted target. This is also one of the frontier study areas in the highly-explored oil-bearing basins in East China and abroad. Based on the integrated analysis of the geological, seismic and logging data and the theories of sequence stratigraphy, tectono-stratigraphy and petroleum system, the paper has attempted to document the characteristics of the sequence stratigraphic and structural frameworks of the low Tertiary, the syndepositional faults and their control on deposition, and then to investigate the forming conditions and distribution of the tithological oil traps in the depression. The study has set up a set of analysis methods, which can be used to effectively analysis the sequence stratigraphy of inland basins and predict the distribution of sandstone reservoirs in the basins. The major achievements of the study are as follows: 1. The low Tertiary can be divided into 4 second-order sequences and 13 third-order sequences, and the systems tracts in the third-order sequences have been also identified based on the examination and correction of well logging data and seismic profiles. At the same time, the parasequences and their stacking pattern in the deltaic systems of the third member of the Shahejie Formation have been recognized in the key study area. It has been documented that the genetic relation of different order sequences to tectonic, climatic and sediment supply changes. The study suggested that the formation of the second-order sequences was related to multiple rifting, while the activity of the syndepositional faults controlled the stacking pattern of parasequences of the axial deltaic system in the depression. 2. A number of depositional facies have been recognized in the low Tertiary on the basis of seismic facies and well logging analysis. They include alluvial fan, fan delta or braided delta, axial delta, lowstand fan, lacustrine and gravity flow deposits. The lacustrine lowstand fan deposits are firstly recognized in the depression, and their facies architecture and distribution have been investigated. The study has shown that the lowstand fan deposits are the important sandstone reservoirs as lithological oil traps in the depression. 3. The mapping of depositional systems within sequences has revealed the time and special distrbution of depositional systems developed in the basin. It is pointed out that major elastic systems comprise the northern marginal depositional systems consisting of alluvial fan, fan delta and offshore lowstand fan deposits, the southern gentle slope elastic deposits composed of shallow lacustrine, braided delta and lowstand fan deposits and the axial deltaic systems including those from eastern and western ends of the depression. 4. The genetic relationship between the syndepositional faults and the distribution of sandstones has been studied in the paper, upper on the analysis of structural framework and syndepositional fault systems in the depression. The concept of structural slope-break has been firstly introduced into the study and the role of syndepositional faults controlling the development of sequence architecture and distribution of sandstones along the hinged and faulted margins have been widely investigated. It is suggested that structural styles of the structural slope-break controlled the distribution of lowstand fan deposits and formed a favorable zone for the formation of lithological or structure-lithological oil traps in the basin. 5. The paper has made a deep investigation into the forming condition and processes of the lithological traps in the depression, based the analysis of composition of reservoir, seal and resource rocks. It is pointed out that there were two major oil pool-forming periods, namely the end of the Dongying and Guangtao periods, and the later one is the most important. 6. The study has finally predicted a number of favorable targets for exploration of lithologieal traps in the depression. Most of them have been drilled and made great succeed with new discovered thousands tons of raw oil reserves.