Pakistan Signs Deal with Canada to Boost Heavy Oil Production

Pakistan's state-owned Oil and Gas Development Company Limited (OGDCL) has signed an agreement with Canada's Synergetic Oil Tools Inc. to boost heavy oil production in Pakistan.

The deal aims to deploy advanced technology at the country's heavy oil wells, which is expected to improve production from highly viscous crude oil wells by optimizing fluid properties and reducing well interventions and downtime.

Pakistan has been seeking to increase domestic oil and gas production to reduce its reliance on costly energy imports, which put pressure on the country's foreign exchange reserves and current account.

The agreement comes as Pakistan pursues broader reforms across its energy sector to reduce import dependence. Last year, Pakistan spent Rs4.4 trillion ($16 billion) on petroleum imports, mostly sourced from the United Arab Emirates, Saudi Arabia, Kuwait, and Qatar.