Altimeter residuals from a global spherical‐harmonic adjustment of satellite altimetry can be used as observations in a subsequent, or second‐phase, adjustment of a short‐wavelength oceanic geoid in terms of point‐mass magnitudes as parameters. An important part of the development presented is the formulation of the second‐phase adjustment via a banded or a banded‐bordered system of normal equations. This task encompasses three separate features: (1) elimination of the point masses from an observation equation if they are sufficiently far from the pertinent observation point, (2) special arrangement of the point‐mass parameters in the adjustment scheme, and (3) resolution of the resulting system through an adaptation of the well‐known Choleski algorithm. If only the point‐mass magnitudes are subject to adjustment, one is concerned with a banded system of normal equations. If selected tidal parameters are also implicated, this system becomes banded‐bordered. In fact, the former is a special case of the latter in every respect. By virtue of this approach (with or without tidal parameters), geoid undulations over large ocean basins can be adjusted in a few overlapping strips of point masses, leading to a detailed resolution of the entire oceanic geoid.