The Tan-Lu fault system in the central Liaodong Bay subbasin, Bohai Bay Basin, has complex structural characteristics, and its tectonism during the Cenozoic is an important factor in oil accumulation. Three-dimensional seismic data were used to document the structural features and evolution of the system. Variations in source rock occurrence, oil catchment area, and faulting intensity were comprehensively evaluated to discuss the heterogeneity of oil occurrence along the system. Detailed analysis of the seismic data indicates a right-lateral slip for the Tan-Lu fault system. Transpression and transtension occur on two branches of the Tan-Lu fault with different orientations, indicating a likely slip azimuth that is between the two orientations, i.e., 30°–35°. The strike-slip began at the middle stage of deposition of the Shahejie Formation and reached its climax during deposition of the first and second members of the Dongying Formation. To date, the slip is still continuing. In the transpressional system, the lower strata on opposite sides of the strike-slip fault were shortened and folded, whereby the upper strata were stretched and normal faulted. As a result, a negative flower structure developed immediately above a positive flower structure. Strain distribution in this system is similar to that in a classic fold. Moderate tectonic deformation could enlarge the oil catchment area, benefiting oil accumulation. Weak or intense deformation is unfavorable for commercial oil accumulation because of a small oil catchment area and poor oil preservation, respectively.