The European Commission is proposing stricter rules for deepwater drilling in the oil industry following BP‘s oil spill in the Gulf of Mexico.

EU Energy Commissioner Gunther Oettinger said that companies drilling in European waters must ensure that they have enough cash reserves to clean up or insurance to cover the costs of a possible spill.

Oettinger also proposes extending the distance of drilling areas from the shore to 200 nautical miles from 12, making companies liable for costs in cases of violation.

The Commission is also considering that EU member states opt for a voluntary national moratorium.

Draft legislation on the new rules may be presented early next year, according to the BBC.

The EU has 900 offshore installations, of which 486 are in UK waters, according to the Commission.