KUWAIT Aug 28 Kuwait's state-run Petrochemical
Industries Co. (PIC) said it would make an initial compensation
payment to Dow Chemical Co after an arbitrator ruled it
must pay $2.16 billion to the U.S. group, Bahrain's Akhbar Al
Khaleej newspaper reported on Tuesday.
The International Chamber of Commerce's International Court
ruled in May that the Kuwaiti chemical company should pay the
sum for wrongly cancelling a planned plastics joint venture in
Dow's law firm Shearman and Sterling LLP said at the time
that it was one of the largest arbitration awards ever made and
that the court's decision was final. PIC is a unit of state-run
Kuwait Petroleum Corp.
PIC's managing director Maha Mulla Hussain has sent a letter
to oil minister Hani Hussein to request approval for the company
to make a first payment of 260 million Kuwaiti dinars ($921
million) the newspaper reported citing unnamed sources.
The sources said PIC's Hussain had asked the oil minister to
place the item on the agenda for the company's board meeting
next Tuesday for approval.
PIC was not immediately reachable for comment. If the report
is confirmed, it would be the first time PIC has said it would
pay compensation to Dow.
Kuwait pulled out of the $17.4 billion "K-Dow" joint venture
with the U.S. company as the global economy sunk into a deep
recession nearly four years ago.