Saudi Aramco plans to invest up to $1.6 billion to acquire around 20% stake in South Korean refiner Hyundai Oilbank, Reuters reported.

The deal is supposed to help Aramco increase its sales of crude oil to the refiner. In addition, it comes in line with the company’s plan to expand its share in Asia, including China, India, Malaysia and Indonesia.

“Saudi Aramco seems to be boosting investments in downstream projects ahead of an initial public offering,” said Lee Dong-wook, an analyst at Kiwoom Securities.

Hyundai Oilbank has a total capacity of around 650,000 barrels per day (b/d) with aims of expanding its petrochemical business.

Saudi Arabia is the top crude oil supplier to South Korea. During 2018, South Korea imported around 323.17 million b/d from the kingdom.