Director Shareholding

Cairn Energy PLC
10 May 2002



EMBARGOED FOR RELEASE AT 0700
                                                                     10 May 2002


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

                             Director Shareholding



Cairn announces that on 9 May 2002, Norman Murray, Cairn's Non-Executive
Chairman, purchased 25,000 Ordinary Shares of 10 pence each in the Company at a
price of £3.415 per share.



Also on 9 May 2002, Hamish Grossart, Non-Executive Deputy Chairman, sold 25,000
Ordinary Shares of 10 pence each in the Company at a price of £3.415 per share.



Following this announcement, the above named Directors' beneficial interests in
Cairn's issued ordinary share capital are as follows:-



                                    Shares                       % of Issued 
                                   Purchased                     Share Capital
                     Previous       /(Sold)        New
    Director      Shareholding                 Shareholding

Norman Murray         25,000        25,000         50,000           0.034
Hamish Grossart       75,000       (25,000)        50,000           0.034






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