The institutional work of the oil company in the valley and the desert began with the decision of the local council in the governorate in 1978, according to which the management of the valley stations was established under the branch of the oil company in Mukalla.

The issuance of Administrative Resolution No. (142) of 2009 in the General Administration of Sana'a to adopt the Wadi Hadhramaut branch and grant it full financial and administrative powers in order to meet the needs of the people of Wadi Hadhramaut of oil derivatives and their easy access to all directorates in light of the geographical nature of the valley and the desert and the spacing of its directorates, which constitute an area of about (1850 km 2).