Abstract: In remote well area of Xinjiang Cainan Desert Oilfield, fluid production has entered a high water cut stage, with low hydrocarbon abundance within single-well drainage, low production per well, small and scattered blocks, and complex geological conditions. Considering these characteristics, an optimal oil and gas gathering and processing technique is developed with the skid-mounted modular design. The multifunctional and skid-mounted equipment allow for modular gathering and processing. Moreover, the skid-mounted design meets the time requirements of development and construction in remote well area - its design cycle and construction period are 30% and 20% shorter respectively than conventional oil and water treatment facilities. The optimal process achieves water separation, sewage treatment and waste water reinjection locally on site, with zero emission. The cost analysis of produced fluid processing in Dixi 12 Well Area shows that the costs can be saved by 75×10⁴ yuan/yr after investment. Therefore, the process is cost-effective.