China's largest offshore oil producer, CNOOC, has started construction of a 5-billon-yuan chemical complex in Hainan province, a move that would further boost its investment in southern China.

The 2-million-ton deep catalytic cracking (DCC) project is located in Dongfang and is scheduled to begin operations in 2011, local media reported.

The project will produce propylene, liquefied petroleum gas and naphtha.