company, is in talks to acquire Gotaas-Larsen Shipping Corp., a spokesman for Gotaas-Larsen said.

The move is seen as a way for Osprey, which focuses on vessels that transport liquefied natural gas and other energy products, to widen the range of ships it operates to take advantage of expanding energy markets in Asia, an analyst said.

The spokesman, who asked not to be named, said Osprey was negotiating with the Monaco-based Barclay family, which controls Gotaas-Larsen. He couldn't provide details.

Osprey officials wouldn't comment.

The Asian Wall Street Journal reported that Osprey was considering paying $500 million to $800 million for Gotaas-Larsen, a closely held company incorporated in Bermuda.

"It's a nimble strategic fit,'' said Richard Stokes, an analyst at W.I. Carr (Singapore) Pte. Osprey has been targeting expansion in the liquefied natural gas business, especially in neighbouring Indonesia, which will have several new gas fields coming on line in the next few years.

Gotaas-Larsen would also expand Osprey's stock of special ships known as very large crude carriers. Shipping rates for these vessels are volatile and have risen about 35 percent in the last year to about $30,000 a day, he said.

An acquisition of Gotaas-Larsen could more than double the size of Osprey, Stokes said. Osprey had profit of $16 million in 1996 on sales of $85.75 million.

How Osprey may finance the purchase isn't known. Stokes said the company already has a "quite significant'' debt load. As of December 31, Osprey had $330 million in long-term debt, 60 percent of its total capital.

The two companies already have a 50-50 joint venture to operate a LNG carrier, the Golar Spirit .

Osprey has been on the acquisition trail. In March 1996, it purchased eight tankers and two shipping-services companies from closely held Petrobulk Group for US$138.9 million.

In February of this year, the company said it reorganised its fleet of 23 oil and refined oil product tankers in a bid to become more efficient.

Osprey shares fell 5 cents to S$2.16.

The move to swallow up a rival would follow a similar step by Singapore-based Neptune Orient Lines Ltd., which said last month that it would buy US-based APL Ltd. for US$825 million to create one of the world's biggest shipping and container companies.

The move -- the biggest foreign acquisition ever by a Singapore company -- came amid a wave of consolidation in the shipping industry, as tougher competition and falling rates is prompting companies to join with rivals to stem falling profits.

Osprey competes in a different market where competition is not as fierce as in container shipping, said Stokes from W.I. Carr.

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