WHILE the credit crunch leaves many firms struggling for funding, a team of oil services veterans has won backing from financiers for a campaign to build a new sector player which will cost tens of millions of pounds.

The new venture, called EnerMech, has been formed by four of the former owners of the PSL business, which was sold to Halliburton for around £120m last year.

Doug Duguid, Michael Buchan, Derek Grant and Phil Bentley want to build another significant player in the services market, which has been booming on the back of strong oil and gas prices.

With backing from US private equity house Lime Rock Partners, they have secured initial capital investment of £30m which they have already started drawing on for acquisitions. EnerMech has bought Aberdeen-based Specialist Maintenance Services, which is the UK's second-largest independent crane and lifting operator, and A1 Safety Training Consultants, which is headquartered in Great Yarmouth.

The prices of the deals were not disclosed.