Kuwait refers K-Dow deal to legal authority - report

18 December 2008 11:31  [Source: ICIS news]

LONDON (ICIS news)--The Kuwaiti government will refer plans for the joint venture between Dow Chemical and Kuwaiti Petrochemical Industries Company (PIC) to the country’s top legal authority, the Fatwa and Legislation Department, state news agency KUNA said late on Wednesday.

The move came after PIC said it would go ahead with the $7.5bn (€5.2bn) agreement, despite opposition by Kuwait’s Supreme Petroleum Council (SPC), which urged reconsideration of the project in the light of the current global financial crisis.

Deputy Prime Minister Faisal al-Hajji said the joint venture project had on Sunday been referred to the audit bureau, which monitors state spending and revenues, KUNA reported.

Dow signed the agreement with PIC on 1 December to create the $17.4bn petrochemicals joint venture, expecting the deal to close no later than 1 January 2009.

PIC agreed to pay Dow $7.5bn to establish the new company, $2bn less than their initial agreement in December 2007.

($1 = €0.70)

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By: Mark Watts
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