Disposal

Cairn Energy PLC
14 August 2003


EMBARGOED FOR RELEASE AT 0700



                                                                  14 August 2003

                                CAIRN ENERGY PLC


           Disposal of Interests in the Dutch Sector of the North Sea


Cairn announces that, on 13 August, it disposed of all of its interests in the
Dutch sector of the North Sea through the sale of its subsidiary Holland Sea
Search B.V. ('HSS') to Dyas B.V. for a cash consideration of approximately US$26
million as at the effective date of 1 January 2003.


HSS holds the following interests ('the disposal interests'):-


• a 4.425% interest in the Markham gas field (Blocks J/3b and J/6);
• a 1.725% interest in Block J/3c;
• a 9.75% interest in Block P/6;
• a 6.944% interest in Block P/12;
• a 4.730297% interest in Block P9/a;
• a 1.775058% interest in Block P9/a & b deep;  and
• a 4.7653% interest in Block P/9c.


Average net production from the disposal interests during 2002 was 1,834 barrels
of oil equivalent per day, representing 8% of Cairn's average daily production
for 2002. Reserves associated with the disposal interests as at 31 December 2002
were 2.66 million barrels of oil equivalent, representing 3% of overall Group
reserves on a net entitlement basis.


As at 31 December 2002 HSS's audited balance sheet had net liabilities of €2.823
million while generating a profit after tax of €6.930 million for the year ended
31 December 2002.


The proceeds from the disposal of HSS will be used to further reduce borrowings
and will provide Cairn with additional working capital to progress projects in
its core area of South Asia.



Bill Gammell, Chief Executive, commented:


'The disposal of these non-core interests is in line with Cairn's strategy of
concentrating on the geographic region of South Asia, where the Group holds
material exploration, development and production assets.'





Enquiries to:-

Cairn Energy PLC:
Mike Watts, Exploration Director        Tel: [phone]
Kevin Hart, Finance Director            Tel: [phone]


Brunswick Group Limited:
Catherine Bertwistle, Mark Antelme      Tel: [phone]



Notes to Editors:-


'Cairn' where referred to in this release means Cairn Energy PLC and/or its
subsidiaries, as appropriate.







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