The motion rule of bottom water in fractured reservoir of buried hill and distribution of residual oil in shu 13938 well of ShuguangOilfield are studied, and the distribution of residual oil is defined. The study result shows that it is necessary to take correspondingmeasures of tapping the potential in light of different existing forms of residual oil：① added perforation and chemical water blocking should be carried out for residual oil in oil-bearing zone； ②chemical water blocking should be carried out for residual oil in transition zone （actual oil production layer）;③drilling cement plug and chemical water blocking should be carried out for residual oil in transition zone （earlier blocking layer）．This study，which can also apply to similar bottom water heavy oil reservoir of buried hill，can effectively solve some development issues ,such as high water-cut caused by bottomwater coning in oil well of the late-period production and so on．This technology provides a newidea to potentiality exploration of residual oil in similar buried hill reservoir for the further development and has some reference value．