An agreement between The Dow Chemical Company and PIC was signed in July 2008 to set up K-Dow Petrochemicals joint venture for a cost of $17.4bn.
The deal was not well received by the Kuwaiti parliament, which led to the cancellation of the agreement in December 2008.
Eventually, Dow sued PIC and in 2012 it was awarded over $2bn damages by an international court.
Dow chairman and chief executive officer Andrew N Liveris said the payment of the damages brings final and appropriate resolution and closure to the issue.
"Our partnership with Kuwait includes several industry-leading joint ventures, which are valuable assets in Dow’s portfolio and have consistently returned accretive equity earnings to Dow," Liveris added.
"Receipt of this award enables Dow to accelerate actions that are in line with our stated priorities for uses of cash – foremost of which is paying down debt and remunerating shareholders."
