Abstract: The seismic coherence technique was proposed for the first time in 1994 by M.Bahorich and S.Farmer from the Amoco Petroleum Company,USA and has been developed and improved in recent years in the interpretation of the variations in faults and sedimentary facies,and delineation of the sedimentary facies zones within favourable hydrocarbon reservoirs.The present paper deals with the application of the seismic coherence technique to the interpretation of faults and sedimentary facies in the Shengli Oil Field.The seismic coherence traces tend to vary in response to the variations in faults,stratigraphic and lithologic features.The study of these coherence traces will be helpful to the delineation of the planar distribution of faults and favourable hydrocarbon reservoirs,and thus significant in the exploration and development of oil and gas.