The Lulehe Formation of Kunbei oilfield in the Qaidam Basin is mainly a set of terrigenous clastics combination, including conglomerate, pebbled sandstones, sandstones, siltstones and mudstones, etc.. According to the study on detailed descriptions to rock core and regional geology, a braided delta deposit was recognized. Based on the detailed analysis on well testing data, underwater distributary channel that was testified to be of better storage capability controlled the vertical and areal distributions of hydrocarbon in Lulehe Formation.