The CNOOC981, which cost $922 million to develop, can reportedly operate in depths of up to 3,000 meters and extract oil from 12,000 meters
That would be a huge leap for China's deepwater drilling capabilities, which previously only went down to 500 meters.
The rig weighs 31,000 tons and has a deck the size of a football field. It took China State Shipbuilding Corp three years to build it.
The state-run China National Offshore Oil company will operate the rig, which will leave Shanghai on Thursday for a "trial cruise" before drilling in the South China Sea in July, the People's Daily reports.
The CNOOC981 is "undoubtedly a milestone in China's oil drilling industry," "It is always a first-come-first-served game when vying for non-renewable resources in disputed sea areas, as the resources are not infinite."