Director Shareholding

Cairn Energy PLC
22 December 2004




EMBARGOED FOR IMMEDIATE RELEASE AT 0700

                                                                22 December 2004


                  Cairn Energy PLC ('Cairn' or 'the Company')

                         Directors' Interests in Shares

Cairn was notified on 21 December 2004 by the Directors specified below that
they have purchased the number of Ordinary Shares of 10 pence each in the
Company set out opposite their respective names. Details of the purchases are as
follows:-

Name of Director      Date of                 Number of Shares        Purchase 
                      Purchase                   Purchased            Price per       
                                                                         Share
Bill Gammell,       21 December 2004               5,000                £10.71
Chief Executive     
                    
Mike Watts,         21 December 2004               1,457                £10.68
Exploration
Director 

Todd Hunt,          21 December 2004               5,000                £10.82
Non-Executive
Director

Total                                             11,457



Following this announcement, the Directors whose names are set out above have
the following beneficial interests in Cairn's issued ordinary share capital:-

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

Bill Gammell                5,000         1,095,000                      0.689
Mike Watts                  1,457           250,000                      0.157
Todd Hunt                   5,000            35,000                      0.022




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