Construction of the world's largest deepwater oil drilling vessel has kicked off in northeast China's Liaoning Province.

COSCO Dalian Shipyard Co. Ltd. will build the Dalian Pioneer in Dalian, Liaoning, under a contract signed with Deutsche Verkehrs-Bank.

Construction is expected to be completed in 2012, said Wang Xingru, General Manager of COSCO Dalian. The vessel will cost more than $500 million.

With a hull size of 290 meters by 50 meters, the vessel is designed to hold up to one million barrels of crude oil and will be the first deep-water drilling vessel built by China. It will be able to work in waters of up to 10,000 feet in depth and can drill to depths of over 30,000 feet.