The bottom plate of aboveground oil storage tanks can bulge, separating from the foundation due to welding deformation. When such a bulge is subjected to liquid pressure, it deforms continuously to make contact with the foundation from the edge, and the remaining area of the bulge decreases with increasing liquid pressure. As a result, the deformation is extremely localized and plastic strain occurs at the bulge. This paper presents a plane strain finite element analysis for the evaluation of localized bottom bulges in aboveground oil storage tanks. Load-incremental, elastic-plastic large deformation analysis is carried out considering the bottom plate contact with the foundation. The relationship of the plastic strain at the bulged bottom plate to the liquid pressure is discussed together with the deformation of the bulge. As a result, the bottom plate thickness has a significant effect on the deformation, but the bulged height does not. After the bulged center makes contact with the foundation, the stress and strain do not increase with increasing liquid pressure. In addition, the permissible bulged profile specified by API Standard 653 elastically deforms to make contact with the foundation under low liquid pressure.