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By Kjetil Malkenes Hovland 

OSLO--Norway's Statoil said it would improve its safety response in offshore helicopter transport and not allow cost-cutting measures to compromise safety, as it outlined the findings of an internal investigation after 13 people died in an offshore helicopter crash in April.

The probe concluded that while Statoil's work helicopter safety is good, the company should pay more attention to technical and commercial aspects that may affect safety.

"The industry's efficiency-improvement efforts and increased focus on costs must not compromise safety," Statoil said.

Struggling helicopter operators are slashing costs amid weaker offshore activity and lower demand for their services, a situation that could potentially put safety at risk, Statoil's investigation group said in a report that was published Friday.

"We will follow up on the recommendations given by the investigation to enhance Statoil's helicopter safety and emergency response," said Statoil's chief operating officer Anders Opedal.

The investigation was launched after a CHC-operated Airbus EC225 helicopter crashed near Bergen on Norway's west coast on April 29, as it was returning from a Statoil offshore platform carrying workers from companies, including Statoil, Aker Solutions and Halliburton. The fatal helicopter crash was the first in the country's offshore sector since 1997.

"None of the helicopter operators are currently making a profit, and costs are being squeezed. Safety is still very good among the operators, but I think we are close to a limit. This report indicates that Statoil is aware of that," said Henrik Solvorn Fjeldsbo, a representative of the Industri Energi offshore union.

Statoil's internal investigators said their sources had reported concerns about the potential consequences of cost cuts as helicopter operators adjusted to weaker demand. In particular, they said that each helicopter may be operating for more hours because of reduced spare capacity, and warned that the spare parts situation was challenging.

"A clearer aviation safety strategy and associated plan needs to be developed," Statoil said.

The 67%-state-owned company's operations include about half the helicopter flights to and from offshore platforms in Norway. It expects traffic this year of 151,000 passengers, down from 211,000 passengers three years ago.

Statoil's internal report is separate from the continued technical investigation into the causes of the April 29 crash, which is being handled by the Accident Investigation Board Norway.

The European Aviation Safety Agency, Europe's air-safety regulator, in June grounded Airbus Group SE Super Puma helicopters, including AS332 L2 and EC225LP units.

The move came after the AIBN had conducted metallurgical assessment of recovered wreckage from the CHC Helicopter's critical main gearbox, which suggested a component failed because of fatigue.

Write to Kjetil Malkenes Hovland at kjetilmalkenes.hovland@wsj.com

(END) Dow Jones Newswires

September 23, 2016 09:05 ET (13:05 GMT)

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