ADCO operates onshore and in the shallow coastal waters of the Emirate of Abu Dhabi. The original concession agreement was made with Petroleum Development (Trucial Coast) Ltd. on January 11, 1939, but geological work did not begin until after the Second World War. Exploratory drilling began in Abu Dhabi in February 1950.

The first commercial oil discovery was made at Bab in 1960, and exports began from the Jebel Dhanna terminal on December 14, 1963. In 1962, the company was renamed the Abu Dhabi Petroleum Company (ADPC). On January 1, 1973, the Government of Abu Dhabi acquired a 25% interest, which was increased to 60% as of January 1, 1974. The Abu Dhabi Government interest is held by ADNOC. ADCO was incorporated on October 8, 1978 and has been responsible, since February 1979, for operations in the concession area, which now covers more than 21,000 square kilometres.

ADCO produces from six oil fields: Asab, Bab, Bu Hasa, Sahil, Shah and North East Bab (Dabbiya, Rumaitha and Shanayel).

These fields are linked by more than 450 kilometres of pipeline, with storage and shipping facilities at Jebel Dhanna, where tankers load crude oil for export to many parts of the world.