Oil group Royal Dutch Shell Plc has agreed to sell more power plants belonging to its InterGen joint venture for an undisclosed sum and aims to have exited the venture by the year-end. Shell said on Friday it planned to sell three InterGen power plants in the United States to Kelson Holding LLC, a unit of Harbert Management Corporation.
It will also sell three InterGen assets in Turkey to its local partner, construction firm Enka Insaat, and is restructuring its plant in Colombia. Shell, the world's third-largest listed oil group by market capitalisation, and US construction firm Bechtel agreed in April to sell 10 power plants at their InterGen venture to a partnership between AIG Highstar Capital II L.P. and Ontario Teachers' Pension Plan for $1.75 billion.
The sale of these 10 plants - located in Britain, the Netherlands, Mexico, the Philippines, China and Australia - was completed, Shell said in a statement on Friday.
It said of the US and Turkish sales, "These transactions, all of which are subject to obtaining necessary consents, should result in Shell's exit from InterGen activities by year end 2005, and mark a significant step in Shell's portfolio restructuring activities."
Shell and Bechtel put the Boston-headquartered InterGen on the block last year, and the sale forms part of Shell's plan to raise $12 billion to $15 billion between 2004 and 2006 by selling non-performing and non-core assets.
Shell owned 68 percent of InterGen and the rest was held by privately owned Bechtel.