It is located in the Yellow River delta, in the north of Shandong province bordering Bohai Sea. Its main working area covers 28 counties under the jurisdiction of eight municipalities in Shandong Province, namely Dongying, Binzhou, Dezhou, Jinan, Weifang, Zibo, Liaocheng and Yantai. The major production area lies on both sides of the Yellow River Mouth.
Shengli Oilfield is the second largest oil production field in China. It was discovered in 1961 and its development began in 1964. It has accumulated proven oil of reserves of 4.63 billion tons.