Oil companies could face fines of up to $10 million if they break environment protection rules in New Zealand's exclusive economic zone (EEZ).
Environment Minister Amy Adams says she intends changing a bill that's going through Parliament to increase the maximum fine from $600,000 to $10m.
"At this new level, I consider the penalty would be high enough to provide significant incentive to comply with the regime when operating in the EEZ," she said.
The maximum fine will be put into the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Bill.
The legislation will enact new measures to protect the marine environment from damage caused by oil exploration, drilling and seabed mining.
It won't come into effect until new regulations are developed. They are expected to be in place by the end of the year.
The EEZ extends 200 nautical miles (370km) from the coast.
The Resource Management Act regulates activities in territorial waters - out to 12km - but New Zealand hasn't had comprehensive legislation covering the EEZ.
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