Continuous development of oilfields fosters a growing need for the simplification of oilfield surface process systems (SPSs) to reduce operating and management costs. Wells, testing stations, transferring stations, and central processing facilities are the main facilities in an SPS; pipelines are used to connect these stations. In this system, production radius (PR) is an important index to determine which transferring station can a testing station be linked to. Different simplification plans will lead to different operating and management costs in the following production period. Therefore, the simplification plan should be carefully designed to minimize cost and facilitate management. This paper proposes an optimization method for the simplification of SPSs in oilfields. First, an evaluation model is developed based on fuzzy analytical hierarchy process (FAHP) to select the transferring stations that need to be decommissioned. Second, hydraulic and thermal calculations are performed to get the data for the calculation of PRs. Third, the PRs, including oil gathering radius, water flooding radius, and hot water washing radius are computed to determine the linkage between the transferring stations and the testing stations. Finally, a construction plan is obtained for new pipelines of the testing stations. A case study is conducted to verify the effectiveness of this method. The results show that this method is suitable for the simplification of SPSs in oilfields.