Abstract: Taking the buried hill reservoir of Budate group in Soudert oilfield, Hailaer basin as an example, through the analysis of fracture plane distribution characteristics, fracture porosity and permeability characteristics, and production capacity in the early stage of development well, the relationship between fracture development characteristics and oil-water distribution in Soudert buried hill reservoir was analyzed. The results show that the fracture development degree is positively correlated with oil-bearing characteristics in buried hill reservoirs, and controls the migration and accumulation of crude oil in the trap. The heterogeneity of fracture reservoirs determines the differential distribution of oil-water interface in different well areas within the same fault block. Due to the lack of spatial connectivity of fractures, the fractured reservoir development areas isolated in the fault block preserve the original formation water state. The analysis of the effect of fracture on oil-water distribution in buried hill reservoirs of Budate group in Soudert oilfield can be used for reference for the evaluation and development optimization of buried hill reservoirs with similar geological conditions.