Coals developed in the Oligocene Yacheng and Lingshui formations in the Qiongdongnan Basin have high organic matter abundance, and the dark mudstones in the two formations have reached a good source rock standard but with strong heterogeneity. Through the analysis of trace elements,organic macerals and biomarkers, it is indicated that plankton has made little contribution to Oligocene source rocks compared with the terrestrial higher plants. The organic matter preservation depends on hydrodynamics and the redox environment, and the former is the major factor in the study area. During the sedimentary period of the Yacheng Formation, tidal flats were developed in the central uplift zone, where the hydrodynamic conditions were weak and the input of terrestrial organic matter was abundant. So the Yacheng Salient of the central uplift zone is the most favorable area for the development of source rocks, followed by the central depression zone. During the sedimentary period of the Lingshui Formation, the organic matter input was sufficient in the central depression zone due to multiple sources of sediments. The semi-enclosed environment was favorable for organic matter accumulation, so high quality source rocks could be easily formed in this area, followed by the Yacheng salient of central uplift zone. Source rocks were less developed in the northern depression zone owing to poor preservation conditions.