Abstract: Based on the correlation and analysis of geochemical characteristics of oils from Batian area, surrounding sub-sags, the hanging wall and foot wall of the fault, the paper determines the key subsags for hydrocarbon generation, identifies fault sealing and analyzes the exploration potential of Batian area. The results show that the oil from the periphery of Longgang subsag with the highest maturity is the product of the source rocks of matured stage, and Longgang sub-sag is the key hydrocarbon generating sub-sag in the periphery of Batian area. The differences of geochemical characteristics such as hydrocarbon’s n-alkanes, sterane and terpane distributions and oil maturity in the hanging wall and foot wall of F1 fault reveals that F1 fault is sealed and the matured oil sourced from Longgang sub-sag never migrates across F1 fault to Batian area. The maturity of the extracts from oil-bearing sandstones in Batian area is low, which is similar to the low-maturity products sourced from the slope, Chajian sub-sag and Dongyang sub-sag. The hydrocarbon generating amount from the source rocks of low-maturity stage is limited so that scaled reservoirs are difficult to form. Therefore, the exploration potential is relatively poor in Batian area and the fault block traps neighboring to Longgang sub-sag should be the favorable exploration targets