One of the world’s biggest oilfield services companies has laid claim to a big chunk of land just south of Red Deer. But Schlumberger Ltd. is keeping quiet about its plans for the 44-acre parcel in McKenzie Industrial Business Park.
Land Titles records indicate that Schlumberger Canada Ltd. — a subsidiary of Schlumberger Ltd. — became registered owner of the land in late December. The property is valued on title at $8.6 million.
A spokesperson for Schlumberger said the company does not want to comment on the acquisition at this time, explaining that it’s still early in the planning process. But site preparation work has been occurring for several months.
“We completed some grading and we had a pipeline that needed to be relocated,” said Guy Pelletier, Red Deer region vice-president for Melcor Developments Ltd., a partner in and project manager of McKenzie Industrial Business Park.
“We had some black dirt stockpiled on the lot as well that had to be relocated to accommodate a lot of this size.
“We still have to do some roadwork and deep utility servicing to make the site completely usable.”
Pelletier said he couldn’t comment on Schlumberger’s plans for the site, which is on the southern-most end of McKenzie Industrial Business Park, adjacent to McKenzie Road (Township Road 374). However, he did confirm that the large square lot was developed specifically for the oilfield company’s needs.
“McKenzie Road provides terrific access out to Hwy 2,” he said of the appeal of the site for a company like Schlumberger.
Planning for the creation of direct access from the property onto McKenzie Road is being done with Red Deer County now, said Pelletier.
After several years of subdued interest in industrial land, a big purchase like Schlumberger’s is welcome, said Pelletier.
“The sign for us that a company like Schlumberger is prepared to locate there is a real stroke of confidence for both us and Red Deer County.”
Melcor has received other recent inquiries about industrial land in Central Alberta, said Pelletier, including for two parcels nearly as big as the Schlumberger lot.
He thinks this reflects the renewed vigor of Alberta’s energy sector and the fact that many oil and gas companies are outgrowing their premises.
In addition to selling other lots in McKenzie Industrial Business Park, Melcor plans to begin work on its own 65,000-square-foot building there this spring.
“We’re working through our development permit process now with the county,” said Pelletier.
Although the project is intended for multiple tenants, Melcor is talking to one company that’s interested in leasing the entire building, he said.
Schlumberger employs more than 113,000 people in approximately 85 countries. In Red Deer, it operates from several locations.
hrichards@www.reddeeradvocate.com