Abstract: Oil and gas development in deep and ultra-deep waters has become a hot issue in worldwide petroleum industry. However, lack of exploration and development equipment for these resources constrains whole progress. With advantage of its capacity in machinery, steel and ship building industries, China ocean petroleum engineering equipment has developed quickly. Currently, China is not only perfecting its manufacturing system for shallow-water prospecting equipment, but also making big progress in producing prospecting equipment for ultra-deep waters. Around 2020, China will be one of best countries of the ocean petroleum engineering equipment. China can rely on its own petroleum equipment to explore hydrocarbons of deep and ultra-deep water in the central and eastern part of northern South China Sea, where foreign powers have not interfered so much, and then turn to southern South China Sea and other area. Thus, China can take initiative in oil and gas development of this area. Meanwhile, China also jointly develop oil and gas in deep and ultra-deep waters with certain foreign companies, and by this way, stop or weaken their cooperation with circumjacent countries that have violated China's sovereignty. By then, China will be able to enter the world's offshore oil and gas exploration and development market in an all-around way.