Latvia Shipping Asks Hyundai To Extend Tanker Deal

State-owned Latvian Shipping has asked South Korean Hyundai Heavy Industries to extend the deadline for signing a $200 million tanker order because of political delays. Latvian Shipping is in the process of having a 44 percent stake sold off. It must receive approval for the shipping deal from the Latvian privatization body - a process, which has been bogged down in political infighting. A deadline for signing a deal with South Korean expires on Oct. 22. "We have asked for an extension, but have not received a response yet,"a Latvian Shipping spokeswoman said. The Privatization Agency board was expected to send the issue for a review to its council, a body of MPs, supervising the selloff process, an agency spokesman said. The order, with estimated costs ranging between $168 to $210 million, calls for two Panamax-type 70,000 dwt tankers to be built immediately, with an option for four more. Latvian Shipping has said it will pay 30 percent of the cost from its own funds and finance the rest through syndicated borrowing. Latvian Shipping operates a total of 60 ships, including 36 tankers with average age of 17.3 years. It also has two gas (LPG) tankers and 19 refrigerated vessels.