This paper develops a synthesis algorithm on networks for the problem of (a) locating appropriate levels and types of cleanup capability to respond to oil spills that may occur in a given area, and (b) allocating such capability among points of high oil spill potential in that area. The heuristic algorithm takes into account frequency of spill occurrence, variability of spill volumes, differing cleanup technologies, equipment efficiency and operability, fixed costs of opening facilities, equipment acquisition, transportation and operating costs, and costs of damage as functions of spill volume and level of response. The algorithm can also accept stipulations on response times. The results of the heuristic algorithm have been compared with results obtained by a Linear Programming (LP) formulation, and the highest deviation observed was around 1%. The advantage of the developed algorithm is apparent in real-life oil spill problems which are large-scale in nature and which cannot be solved by the LP procedure.