Director Shareholding

Cairn Energy PLC
14 May 2001

FOR IMMEDIATE RELEASE


                                                                   14 May 2001



                 CAIRN ENERGY PLC ('Cairn' or 'the Company')

                            Director Shareholding


Cairn announces that Bill Gammell, Chief Executive, today exercised a total of
47,000 options over Ordinary Shares in Cairn under the Company's Executive
Share Option Scheme at a cost of £45,390. Details of the options exercised are
set out below.


    Date of Grant            Number of Options             Exercise Price
     4 June 1991                  20,000                        £1.50
     6 July 1993                  27,000                        £0.57

Following this announcement, Mr Gammell's interest in the Ordinary Shares of
the Company is as follows:-


    Number of       % Issued Ordinary    Number of    Awards under Long Term
 Ordinary Shares      Share Capital       Options         Incentive Plan
                                                      Tier One      Tier Two
     562,000              0.380           205,000      594,000       597,000