By Euan Rocha and Simon Webb

NEW YORK/DUBAI (Reuters) - Dow Chemical (DOW.N: Quote, Profile, Research) and Kuwait Petroleum Corp, its partner in a proposed $19 billion joint venture, said the venture will close as scheduled by the end of 2008.

The two companies reaffirmed the timing following a media report which indicated KPC was reviewing the deal in light of the global financial crisis.

The deal, part of Dow's strategy to reduce its exposure to the cyclical nature of the commodity chemicals business, was announced in December 2007.

Earlier on Wednesday, Kuwait's state news agency KUNA quoted KPC Chief Executive Saad al-Shuwaib as saying the deal was under review due to the financial crisis.

KPC's Petrochemical Industries Co is supposed to pay Dow $9.5 billion to contribute five of the U.S. company's units to the 50-50 joint venture. The new entity is expected to produce chemicals used in products ranging from plastic bottles and compact disks, to computers and agricultural compounds.

Dow and KPC confirmed that they are still in negotiations concerning the deal, but maintain that there is no delay in the closing date.

"We remain on track to close the transaction by the end of the year," Dow spokesman Bob Plishka told Reuters.

A spokesman for KPC said the project is not delayed and we are still in negotiations.