The second-largest energy company in the world, Shell has taken a step closer to acquiring Cove Energy after Mozambique gave the deal the green light, removing one of the conditions of a takeover which will see the oil major access East Africa’s huge gas reserves.

Today, Cove indicated that it received written confirmation from Mozambique’s government consenting to Shell’s $1.8 billion offer for the company, echoing an announcement by Shell on Wednesday.

Reuters reports suggest that the consent from Mozambique would fast track the acquisition process for Shell, putting competitors on the back foot as they would have to gain the country’s approval to stand a chance. Prior to the consent, there had been hints of a bidding competition for Cove after a rival suitor, Thailand’s PTT Exploration and Production, refused to rule out making an offer when Shell launched its latest bid in April.

Industry interest in Mozambique, where Cove owns an 8.5 per cent stake in a huge gas field, has intensified in recent years as previously little-explored East Africa is tipped to become a major natural gas producing region with discoveries/production in Kenya, Ethiopia and South Sudan.

According to analysts, Shell’s expertise in developing gas fields would likely translate to Mozambique blessing the oil major’s bid, helping Shell to be seen by Cove as a preferred buyer.

Until recently, Mozambique was a country in the East African region with no antecedent in the oil and gas industry. However, recent discoveries are starting to put the country on the map as far as the industry goes.