Director Shareholding

Cairn Energy PLC
10 March 2004



FOR IMMEDIATE RELEASE

                                                                   10 March 2004
                  Cairn Energy PLC ('Cairn' or 'the Company')

                        Purchase of Shares by Directors
          Awards under the Company's Long Term Incentive Plan ('LTIP')

Cairn announces that on 9 March 2004, the following Directors purchased a total
of 20,000 Ordinary Shares of 10p each in the Company. Details of the purchases
are as follows:-

Name of     Position                   Number of Shares      Purchase Price per
                                       Purchased             Share
Director

Norman      Chairman                                10,000               £8.25
Murray

Mark        Non-Executive Director                   5,000               £8.25
Tyndall

Philip      Engineering & Operations                 5,000               £8.25
Tracy       Director

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

Name of           Previous          Shares         New         % of Issued Share
              Shareholding      Purchased      Shareholding      Capital
Director

Norman               60,000         10,000         70,000                0.047
Murray

Mark                      -          5,000          5,000                0.003
Tyndall

Philip                    -          5,000          5,000                0.003
Tracy

Cairn also announces that today the following awards were made under the LTIP to
Directors of the Company at a price of £8.731/2 per share (being the mid-market
closing price on 9 March 2004):

Name of      Number of Ordinary Shares under   Number of Notional Shares under
             Tier One                          Tier Two
Director

Bill                                  63,000                            50,000
Gammell

Mike Watts                            38,000                                 -

Kevin Hart                            38,000                                 -

Malcolm                               38,000                                 -
Thoms

Philip                                32,000                            32,000
Tracy

As a result of these awards, the total number of Shares/Notional Shares held by
the above named Directors under the LTIP is as follows:

Name of      Number of Ordinary Shares under   Number of Notional Shares under
             Tier One                          Tier Two
Director

Bill                                 233,000                           430,000
Gammell

Mike Watts                           186,000                           330,000

Kevin Hart                           169,000                           330,000

Malcolm                              159,000                           330,000
Thoms

Philip                               131,000                            81,000
Tracy


Cairn also announces that a total of 582,790 Ordinary Shares of 10p each in the
Company have today vested in favour of certain of the Executive Directors
pursuant to the LTIP. Under the LTIP Rules, 50% of the shares vesting are to be
released as soon as is practicable by the Company's Employees' Share Trust ('the
Trust') to the Executive Directors. These shares have not yet been transferred
to the individuals. The balance of the shares is withheld by the Trust and
released to the individuals after one year. Details of the shares vesting and
the resulting effect on the Directors' shareholdings are set out below:

Name of      Previous            Shares    New            % of Issued Share
             Shareholding                  Shareholding   Capital
Director                         Vesting

Bill                   880,000   205,069      1,085,069                  0.722
Gammell

Mike Watts             152,041   125,907        277,948                  0.185

Kevin Hart             221,811   125,907        347,718                  0.231

Malcolm                260,000   125,907        385,907                  0.257
Thoms


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