Liuhua 16-2 Oil Field was discovered in May 2010 in Pearl River Mouth Basin, northern South China Sea. It is a middle scale one that yields commercial light crude oil. It is also the one with the largest petroleum reserves in the basin since self-supporting exploration by CNOOC. The Liuhua 16-2 is a fault block trap locating in deep-water area at the east end of Panyu Low Uplift, Pearl River Mouth Basin. Reservoirs are composed of the lower Miocene lower Zhujiang marine sandstone and the lower Oligocene Zhuhai bioclastic limestone and the cap is composed of the thick upper Zhujiang marine mudstone, both of which are of a good reservoir-cap assemblage. It is indicated that the oil in Liuhua 16-2 reservoirs derives from the Paleocene Enping and Wenchang mudstone source rocks in the east of Baiyun Depression to the south of this oil field. The oil pools of it are characterized of shallow buried depth, high oil reserves abundance, low oil density and high tested oil output. The exploration and exploitation history of the oil field and the general geological characteristics are reviewed, and also the experience and enlightenment during exploration and development are discussed and summarized.