Kuwaiti oil minister stands by Dow/PIC jv - report

22 December 2008 23:31  [Source: ICIS news]

Mohammad al-Olaim, oil minister of KuwaitHOUSTON (ICIS news)--Kuwait's oil minister said that the state-run Petrochemical Industries Co (PIC) will pursue its joint venture (jv) with US major Dow Chemical, despite some opposition from parliament, Reuters reported on Monday.

PIC had agreed to pay Dow $7.5bn (€5.4bn) to establish the joint venture, K-Dow Petrochemicals.

Some members of the nation's parliament have questioned the viability of the joint venture, given the world's financial crisis and falling crude oil prices, Reuters reported. However, Mohammad al-Olaim, the oil minister, said the deal went through all official channels and procedures.

The Agence France-Presse (AFP) reported that a Kuwaiti opposition group, the Popular Action Bloc, has threatened to quiz the nation's prime minister over the deal. It also urged him to scrap the Dow deal.

Earlier this week, the managing director of PIC, Maha Mulla Hussein, said in a statement that the company obtained the necessary approvals to close the deal.

($1 = €0.72)

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By: Al Greenwood
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