Olíudreifing's main activities are the distribution and stock keeping of liquid fuel for its owners, N1 hf and Olíuverslun Íslands h/f. Olíudreifing has overtaken the operations of the parent companies in these fields. The distribution was first taken over in Reykjavík, Hafnarfjörður and Hvalfjörður, on the Company's first day of operation on 1 January 1996.  Activities were subsequently taken over in various locations around the country, one after another. On 1 November 1999, the company took over the operations of the parent companies in Ísafjörður, thus taking over all their distribution of liquid fuel for them outside the airports in Keflavík and Reykjavík. The company delivers fuel to customers of the parent companies according to their wishes or according to requests from the customers.  All delivery information is recorded on handheld computers in the Company’s delivery trucks and sent electronically to the relevant parent company. The operations of the Distribution Division are explained visually below.

The company also operates vehicle, blacksmithing, pump and electrical workshops. The workshops take care of the maintenance and development of the company's assets, in addition to taking care of the maintenance and development of the technical equipment of the parent companies' service centres. In the beginning, almost all of Olíudreifing's employees came from either parent company or their agents. Due to the low turnover in personnel, the majority of employees comes from these companies. The Company has carried out maintenance projects for various parties.  The Company has 130 employees at 34 locations around the country. In addition, contractors handle distribution in 10 locations. The Company owns and operates approximately:

60 tankers, trucks and tractors as well as about 50 smaller cars.

37 depots with a total of 210 million litres of storage space.

500 tonne supply boat

The company is also the sole owner of the wholesaler G. Hannesson.