I wrote the S76 checklist, and in the intro paragraph to Chapter 3 gave the pilot the latitude to be more than a sweaty flight-manual reader. The difference between airmanship/wisdom and memorizing flight manuals is the difference between pilots and stick wigglers, IMHO. If the flight manual words say "XXX" and you think you must do it, then do so. However, if the PIC decides to actually try some airmanship, in many cases it would be welcomed.
The ease of saying and preaching (in the ease of a Sunday at the keyboard criticizing your fellow pilot) blind obedience to the flight manual, "land immediately" is often confounded by the actual conditions, and by the fact that the aircraft is still flying nicely, even if a few lights are on. I am reminded of the American Airlines DC10 Chicago engine drop-off accident: In simulator trials afterward, the crews that obeyed the checklist and slowed to Vy (while they were climbing at over 2000 fpm before the slow-down) all died like dogs, those that flew wisely like airmen landed successfully.
I do not know what happened with this specific aircraft, at all, but I am lead to believe from 212man's posts that it did not lose all or most of its oil, rather, it might be that it had an oil leak. Any pilot who ditches a load of passengers with an oil leak (even if he memorized the flight manual in that case) might deserve to be ppruned to death, afterwards.
212man, any comments?
A second illustration of what I mean:
The Air Florida National Airport icing crash occurred because the crew obeyed and believed the EPR gages in spite of the fact that they had no climb and were about to hit the ground. They were gloriously slaved to the checklist and the flight manual, and their slavish unairmanship doomed their passengers. Had they simply pushed the throttles up, they would have climbed. The difference between thinking and memorization might be a problem in some cultures (frankly, I am about to get into pprune trouble here) the typical European attitude that the lords of the flight manual and the CAA know more than mere vassels. This religeous following of every word is more likely to lead to airmanship problems than the attitude that these pubs are guidelines for smart people to follow, but not slave themselves to.