Kuwait Scraps Joint Venture with Dow Chemical
December 29th, 2008Via: AP:
Kuwait’s government on Sunday scrapped a $17.4 billion joint venture with U.S. petrochemical giant Dow Chemical after criticism from lawmakers that could have led to a political crisis in this small oil-rich state.
The Cabinet, in a statement carried by the state-owned Kuwait News Agency, said the venture, known as K-Dow Petrochemicals, was “very risky” in light of the global financial crisis and low oil prices. The move came just days before the Jan. 1 startup date for the joint venture.
In its statement, the Cabinet said the “limits of the effects” of the meltdown on international companies cannot be forecast. KUNA said the contract was canceled by the Supreme Petroleum Council, the country’s highest oil authority.
