Imperial Oil says it will end operations at its Norman Wells facility, the heart of the Sahtu town’s economy, later this year.
In a Friday statement posted to its website, Imperial said: “Hydrocarbon production at Norman Wells in the Northwest Territories will end in the third quarter of 2026 as the facility comes to the end of its lifespan.”
The company has had a presence in the area for more than a century, but had repeatedly stated in recent years that the end was near.
“We have worked extremely hard to continue operations and maintain local economic benefits,” the company’s Friday statement quoted a senior vice-president, Cheryl Gomez-Smith, as saying.
“However, with declining production we have made the difficult decision to end production. We are focused on a safe and orderly shutdown of operations.”
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As of late 2024, about 80 employees and contractors worked at the Norman Wells facility each day according to the company’s figures at the time.
Imperial has said it provides annual property taxes of about $6 million to the Town of Norman Wells, which the company said “constitutes approximately 70 percent of the town’s budget.”
Fuel supply will continue for now
Norman Wells has a population of about 750 people.
On its website, the town calls itself “the first community in the NWT established solely as a result of non-renewable resource development” – it was set up in the 1920s, when Imperial Oil built its first refinery there.
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Imperial is also the only wholesale fuel supplier to Norman Wells businesses and residents.
On Friday, the company said there will be “no near-term changes to wholesale fuel supply arrangements for the community that Imperial currently services.”
Imperial also reported its fourth-quarter results for 2025 on Friday, showing a net profit of US $492 million from October to December inclusive – down on a profit of $1.2 billion over the same period in 2024.
Moving up the end of operations in Norman Wells resulted in a US $320-million after-tax charge against Imperial’s latest earnings, Friday’s report stated, including costs related to some contractual obligations.
There are multiple ongoing regulatory processes related to Imperial’s Norman Wells operations, which involve a system of artificial islands in the Mackenzie River.
“Imperial will continue to collaborate with communities and regional stakeholders on future reclamation plans for the Norman Wells production facilities,” the company stated, adding it is “assessing next steps” for the various processes already under way.
“Final reclamation work is not expected to start until after 2030, once a final closure plan and environmental assessment are completed and permits are approved by regulators.”
Repercussions ‘will be felt hugely’
Danny McNeely, the Sahtu MLA, said Friday’s announcement was “shocking” from the perspective of what he called a “one-industry community.”
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“The repercussions of this announcement is going to be felt hugely” across the Sahtu, McNeely told Cabin Radio.
In a statement, NWT Premier RJ Simpson said the decision would be “difficult news for many people in Norman Wells and across the Sahtu.”
“While this decision is not entirely unexpected given the age of the facilities and long-term trends, it is still disappointing,” Simpson stated.
“It also comes at a time when stability matters. In the immediate period ahead, our focus as a government is on support, certainty, and a responsible path forward.
“Our priority right now is people. Our government is engaging with the community and the company, and working in partnership with the Government of Canada and Indigenous governments, to understand impacts and ensure appropriate supports are in place.”
Simpson said work continued to get the Mackenzie Valley Highway off the ground, a proposed all-season road to the Sahtu that he said “would be transformation for the region.”
“I am in Ottawa this week meeting with Premiers and the Prime Minister to make the case for investment and opportunity in the North. Our goal is to see more projects move forward, more jobs created, and more positive announcements for the territory’s economy and communities,” he wrote.
“The people of Norman Wells, the Sahtu, and the entire territory deserve a future that is stable, sustainable, and full of opportunity. Our government remains committed to working with partners to support communities today while building a stronger economic future for tomorrow.”
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The NWT’s MP, Crown-Indigenous relations minister Rebecca Alty, said the federal government “remains focused on building economic resilience and strength in North and throughout Canada.”
“I will stay closely engaged with the governments of the Northwest Territories, Tłegóhłį Got’įnę, and with community leaders so we can work through the impacts of this closure together and identify the best ways to support workers and the community as a whole,” Alty said in a statement.
Claire McFarlane contributed reporting.
