Director Shareholding

Cairn Energy PLC
3 January 2001

                                                                              
                 CAIRN ENERGY PLC ('Cairn' or 'the Company')                  
                                                                              
             Awards under the Company's Long Term Incentive Plan              
    

Cairn announces that the following awards were made on 2 January 2001 to
Directors of the Company under the Company's Long Term Incentive Plan at a
price of £2.055 per Share (being the mid-market closing price on 29 December
2000):

Name of Director          Number of Ordinary         Number of Notional
                          Shares Under Tier 1        Shares Under Tier 2   
                            
W B B Gammell                 194,000                     97,000
M J Watts                     121,000                     43,000
K Hart                        121,000                     43,000
M S Thoms                     121,000                     43,000

As a result of these awards, the total number of Shares/Notional Shares held
by the above named Directors under the Company's Long Term Incentive Plan is
as follows:

Name of Director         Number of Ordinary         Number of Notional
                         Shares Under Tier 1        Shares Under Tier 2   
                            
W B B Gammell                 594,000                     597,000
M J Watts                     366,000                     493,000
K Hart                        366,000                     493,000
M S Thoms                     366,000                     493,000