Kuwait is in "friendly" unofficial talks with Dow Chemical Co. to avoid paying a $2.5bn penalty for scrapping a $17.4bn petrochemical deal, Arabic daily al-Rai has reported. Kuwait has offered to pay 10% of the penalty which amounts to some $250m, the paper said. Kuwait scrapped the petrochemicals deal with Dow in December 2008, a month after signing it, due to criticism in parliament.