Shell and engineering company Bechtel have completed the sale of InterGen, their power producing joint venture, for $1.75 billion to AIG Highstar Capital II L.P. and Ontario Teachers' Pension Plan.

The sale was made by Shell Generating (Holding) B.V., a subsidiary of Royal Dutch Shell, together with Bechtel Enterprises Energy B.V. According to Shell, its divestment proceeds will exceed $1 billion, which will contribute to its $12-$15 billion divestment goal for the period 2004-2006.

Separate to the transaction, Shell has reached agreement to sell InterGen’s assets in the US and Turkey, despite previously saying they would be retained pending further review.

The US assets will be sold to Kelson Holding, a unit of Harbert Management Corporation, while Shell’s three InterGen power plants in Turkey will be bought by construction firm Enka Insaat These transactions should result in Shell’s exit from InterGen activities by the end of 2005.