The accord is part of Pakistan’s efforts to boost domestic oil and gas output and reduce its dependence on costly energy imports, which continue to weigh on the country’s foreign exchange reserves and current account.

Under the deal, Synergetic Oil Tools will deploy its Passive Energy Tool technology at OGDCL’s heavy oil wells.

According to the state-owned exploration company, the technology is designed to improve production from highly viscous crude oil reservoirs by enhancing fluid flow, reducing the need for well interventions, lowering operating costs and minimising the use of production chemicals.

The agreement was signed in Islamabad in the presence of OGDCL Managing Director and Chief Executive Officer Ahmed Hayat Lak, Synergetic Oil Tools President and CEO Brian Herman, and Canadian High Commissioner to Pakistan Tarik Ali Khan.

Speaking at the signing ceremony, the Canadian envoy said the partnership would bring world-class technology and services to Pakistan’s energy sector, helping improve heavy crude oil extraction and production.

Pakistan has been seeking to strengthen domestic energy production as it looks to cut its reliance on imported petroleum products.

According to official figures, the country spent around Rs4.4 trillion (about $16 billion) on petroleum imports last year, with the bulk of supplies coming from the United Arab Emirates, Saudi Arabia, Kuwait and Qatar.