Two offshore energy firms were fined a total of £1.2m yesterday after admitting safety breaches that led to the death of an oil worker.

Two offshore energy firms were fined a total of £1.2m yesterday after admitting safety breaches that led to the death of an oil worker.

Matthew Grey, a 59-year-old pipe-fitter from Darlington, was killed while working on the Bleo Holm, 72 miles north-east of Aberdeen, on January 6 last year.

His co-worker, Norman Jackson, of North Shields, was injured.

They were cutting a pipe and hoisting up cargo from the oil tank 20 metres below the deck on the vessel in the North Sea when the tragedy happened.

Both Aker Kvaerner Offshore Partner Ltd employees had been contracted by boat operators Talisman to carry out extensive work in the tank.

But a series of safety failures led to the death of 60-year-old Mr Grey.

Aberdeen Sheriff Court heard that only two men were allowed to carry out the procedure in the tank, but three men had been sent down.

Procurator-fiscal Ernest Barbour said permits had been arranged for both jobs but were amended by the Offshore Installation Manager (OIM) without the knowledge of one of the supervisors.

The three men had gone down with radios but had communicated with above using hand signals.

Mr Barbour said part of the load had fallen back into the tank when being lifted.

He said: "It is not entirely clear but it appears that one of the yellow angle clamps appears to have struck Matthew Grey, the second yellow angle clamp appears to have hit a large valve lying on the scaffold deck, bounced and hit Norman Jackson."

A medic rushed to the scene but a short time later Mr Grey was pronounced dead.

Rigging foreman Norman Jackson, 58, was flown to Aberdeen Royal Infirmary and discharged after treatment for a minor arm injury.The court heard that there was a "failure in communication" between the Aker superintendent and the Talisman Area Authority, who issue permit changes.

Both companies plead guilty to charges of failing to provide a safe work system for employees and failing to identify work permit conflicts.

Talisman's solicitor Jack Davidson, QC, said the oil company had taken on a raft of new procedures to ensure the tragedy did not happen again, while Aker's solicitor Rhona Jamieson said both companies had since set up a joint training scholarship in memory of Mr Grey.

Sheriff Douglas Cusine fined the oil company and engineering firm £600,000 each.

After the hearing, Nick Walker, Senior Vice-President of Talisman Energy (UK) Limited, said: "We take full responsibility for this tragedy. We are truly sorry that it happened and again express our deep regret and sympathy to the family of Matthew Grey."

Rod Buchan, Aker Solutions managing director in Aberdeen, said: "I wish to re-state our sorrow at this tragic event, and our commitment to work hard to ensure our detailed investigations and subsequent actions help avoid another such incident."

Following the case, the Health and Safety Executive (HSE) issued a warning about the dangers of "poorly managed lifting operations" offshore. A spokesman said: "This tragic incident should remind everyone in the offshore industry and elsewhere that lifting operations are hazardous and must be carried out in a safe manner."

In August, the Health and Safety Executive warned the North Sea oil and gas industry to improve safety after statistics revealed that there had been a rise in the number of major injuries.

The Offshore Safety Statistics said that the number of major injuries in the offshore sector in 2007-08, rose from 39 the previous year to 44.