US-based Dow Chemical Company has been awarded US$2.16 billion in compensation from Kuwait by an international arbitration for the cancelling of a planned joint venture in 2008
The ruling against Petrochemical Industries Co (PIC) of Kuwait was issued by the International Court of Arbitration of the International Chamber of Commerce (ICC) and, according to a statement from Dow, the ruling is final and binding.
“This outcome brings resolution and closure to the issue,” said Dow chairman and chief executive officer Andrew Liveris.
In December 2008, the Kuwaiti government scrapped a $17.4 billion deal between PIC and Dow to create a petrochemicals joint venture named "K-Dow". Both Dow and PIC agreed to refer the dispute to the ICC.
"We remain focused on continuing to move forward with our transformation and profitable business partnerships both in Kuwait and around the world,” Liveris remarked.
Dow and PIC currently operate four other joint ventures, including ME Global, EQUATE, Kuwait Olefins Co and Kuwait Styrene Co.
