EQNR Equinor ASA

By Kjetil Malkenes Hovland 

OSLO -- Eleven bodies have been found after a helicopter crashed off the west coast of Norway on its way back to the mainland from an offshore oil field, local police said Friday.

The helicopter, operated by CHC Helicopter Service, was carrying 11 Norwegians, one Italian and one U.K. citizen, a police spokesman said.

The search was called off in the late afternoon, and all 13 aboard have been presumed dead.

"It sounded a bit like thunder," said Vegard Jostein Turoy, 24, who witnessed the accident from inside a nearby wooden cabin. "First, I heard a helicopter overhead but barely noticed it. Then I heard some strange noises and creaking sounds, and when I looked out the window I saw the helicopter coming down."

The helicopter was traveling to Bergen Airport from Statoil ASA's Gullfaks B oil field, and crashed at a small island northwest of Norway's second city Bergen. Mr. Turoy estimated that he was about 1.5 kilometers (0.93 miles) away from the crash site, and said the rotor separated from the helicopter, an Airbus H225, and that the aircraft slammed into the ground.

"When I saw it, I thought: there won't be much left. There was an explosion, and a fire that lasted for a long time," he said.

The crash marks the first fatal helicopter accident in Norway's offshore sector since 1997, when another Airbus helicopter crashed on the way from the mainland to the Norne field and 12 people died.

"Exact details of the incident are not yet known," CHC Helicopter said. "The company's Incident Management Team is being mobilized."

British and Norwegian authorities have suspended commercial operations of Airbus EC 225 helicopters, according to Bristow Group Inc., an energy-sector helicopter provider working in the North Sea.

The Airbus helicopter is one of the most commonly used models for the oil and gas sector. The model has had safety issues, though. The helicopter maker had to redesign the gearbox after issues were found following two ditchings in 2012, which also temporarily led to restrictions on flights over water.

Flights using a similar Airbus helicopter model were briefly suspended in 2013 following a fatal crash off the coast of Scotland. The helicopter also was operated by CHC Helicopter.

"Airbus Helicopters has been informed about an accident," Airbus said. "We are now assessing the situation and stand ready to fully support the authorities in their investigation."

The crash comes at a difficult time for commercial helicopter makers. The prolonged slump in crude prices has led oil and gas companies to cut capital expenditures, weighing on demand for new helicopters.

Parent CHC Group Ltd. is already in financial trouble and has warned in regulatory filings that it could be forced to seek bankruptcy protection.

The company has struggled under successive private equity owners to restructure a heavy debt load, and on April 15 missed an interest payment, triggering a 30-day grace period that could lead it to default on more debt if it doesn't make up the arrears.

Vancouver-based CHC is one of two global helicopter operators alongside Houston-based Bristow Group Inc. which have been forced by the energy downturn to cut costs and staff.

CHC was delisted from the New York Stock Exchange in February, two years after an IPO that saw the company valued at its peak at more than $1.2 billion. The stock was recently down 6.5% at 70 cents, valuing it at $1.9 million. Bristow gained almost 4% in early trade.

The Norwegian Civil Aviation Authority said it had temporarily grounded all similar helicopters on the Norwegian shelf in response to the accident.

Statoil said it had set up an emergency organization to handle the situation. A phone line has been set up for the families of those on board the downed chopper, and a center for the next of kin has been set up at a local hotel.

There is a significant rescue operation at the scene of the crash, including two Sea King search and rescue helicopters, navy vessels, divers, and fire crew, a rescue center official said.

The Norwegian Accident Investigation Board said it was on its way to the crash site. The British Air Accidents Investigation Branch said it was sending a team of inspectors to assist its Norwegian counterpart in the probe.

National police said a team was on its way to help identify the deceased.

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

(END) Dow Jones Newswires

April 29, 2016 13:59 ET (17:59 GMT)

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