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Oil productions can result in pore pressure drop in the reservoir, generating an increase in effective stress and leading to reservoir compaction. The compaction in the subsurface reservoir translates to the earth's surface, which is manifested as a loss of elevation (land subsidence), causing damages to oil production facilities and surface infrastructures. The Liaohe oilfield, located in Liaohe River Delta (LRD), northeast of China, is one of the most significant subsidence areas in China as a direct consequence of oil extraction from the reservoir. Previous studies carried out in this area assumed the oil production-induced displacement retrieved from Interferometric Synthetic Aperture Radar (InSAR) corresponds only to vertical deformation. In this work, for the first time, we proposed a method to retrieve the full three-dimensional (3D) displacement field over the oilfield. We retrieved the vertical and east-west displacement components by combining the multiple-geometry InSAR line-of-sight (LOS) observations and retrieved the north-south component based on the assumption of a physical relationship between the horizontal and vertical displacement. Two ascending and two descending datasets from Sentinel-1 satellite covering the area were processed by an InSAR time series analysis over the 2017 to 2021 period, providing consistent displacement rate maps and displacement time series in the LOS direction. Spatial local-scale land subsidence was found in several producing fields over the deltaic region, including Shuguang, Huanxiling, and Jinzhou oilfields. The 3D displacement decomposition was then conducted in Shuguang oilfield. The derived 3D displacement field exhibit a circular subsidence bowl with a maximum subsiding rate reaching 212 mm/year, accompanied by a centripetal pattern of horizontal displacements with maximum rates up to 50–60 mm/year moving towards the subsidence center. The retrieved 3D displacements are in good agreement with predictions from the geomechanical modeling by assuming a disk-shaped reservoir subject to a uniform reduction in pore fluid pressure. Finally, we show the importance of knowing both the vertical and horizontal displacement in characterizing the lateral boundary of the subsurface reservoir. [ABSTRACT FROM AUTHOR]