Commencement of Trading

Cairn Energy PLC
09 January 2007



NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN, OR INTO, THE UNITED STATES,
CANADA, AUSTRALIA OR JAPAN



                                CAIRN ENERGY PLC

             Commencement of Trading of Cairn India Limited Shares



Cairn Energy PLC announces that, following approval by the Bombay Stock Exchange
Limited ('BSE') and the National Stock Exchange of India Limited ('NSE') on 5
January 2007, trading has today commenced in the shares of its Indian
subsidiary, Cairn India Limited ('Cairn India') on the BSE and the NSE.

DSP Merrill Lynch Limited as stabilising agent has over-allocated 33 million 
further Cairn India shares.  In connection with the issue, the stabilising agent 
may undertake stabilising transactions with a view to supporting the market price 
of Cairn India shares in the period commencing on the obtaining of trading 
approval from the stock exchanges referred to above and ending 30 calendar days 
thereafter, unless terminated earlier.  The stabilising agent has been granted an 
option to acquire further shares from Cairn India to cover over-allocations that
 are not covered by stabilising transactions.  There is no assurance that 
stabilisation will be undertaken and, if commenced, it may be discontinued at 
any time.

ABN AMRO Rothschild and Merrill Lynch are acting as joint global coordinators 
and bookrunners and Morgan Stanley as bookrunner in relation to the flotation.

Sir Bill Gammell, Chief Executive of Cairn Energy PLC, commented:


'I am delighted that we have been able to achieve our strategic goal of creating
an autonomous business and management team for our world class assets in India.
I firmly believe that the Indian listing will create enhanced opportunities for
Cairn, Cairn India, their respective shareholders and other stakeholders in the
future. The flotation is a tremendous achievement and is a testament to the
Cairn ethos of making things happen on a fast-track basis.'

Enquiries to:
Analysts/Investors
Bill Gammell Chief Executive                            Tel: [phone]
Jann Brown Finance Director
Mike Watts Exploration Director

Media
David Nisbet, Head of Group Communications

Brunswick Group LLP:
Patrick Handley, Mark Antelme                           Tel: [phone]



Cairn India Limited ('Cairn India') is undertaking a public issue in India and
has filed a Prospectus with the Securities and Exchange Board of India. This
announcement is not an offer for sale, or a solicitation of offers to purchase,
the shares in Cairn India offered in the offering (the 'Shares') in any
jurisdiction. No action will be taken to permit the Shares to be sold in a
public offer in any jurisdiction outside India. In particular, no offer to the
public will be made in any Member State of the European Economic Area or in the
United States. The Shares have not been and will not be registered under the US
Securities Act of 1933, as amended. This announcement and the information
contained herein are not for publication, distribution or release in, or into,
the United States, Canada, Australia or Japan.



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