Disposal

Cairn Energy PLC
20 September 2000



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


                   Sale of Energy Explorer IV Drilling Rig


Cairn announces that on 19 September 2000 its wholly-owned subsidiary, Energy
Explorer Ltd. entered into a legally binding Memorandum of Agreement to sell
its offshore drilling rig, the Energy Explorer IV for a price of US$22.25
million in cash.  The consideration is payable on completion of the sale,
which is expected to take place on 20 October 2000.  

The Company intends to use the sale proceeds for ongoing working capital
requirements. 

The rig, which is currently contracted to Shell Bangladesh Exploration &
Development B.V., will continue to be used for the ongoing drilling programme
in Bangladesh.  






Enquiries:-

Cairn Energy PLC:                     

Bill Gammell, Chief Executive                  Tel: [phone]        
Kevin Hart, Finance Director                   Tel: [phone]


Brunswick Group Limited:

Victoria Sabin                                 Tel: [phone]
Melissa Miller                                 Tel: [phone]