Holding in Company

Cairn Energy PLC
19 January 2001



                          Cairn Energy PLC ('Cairn')                          
                                                                           
  Notification of Shareholding - Companies Act 1985 ss.198-202 (as amended)

Cairn was today notified by The Capital Group Companies, Inc. that its
affiliates, Capital International S.A. and Capital Research and Management
Company now have in aggregate an interest in 10,182,500 Ordinary Shares of 10p
each in Cairn, representing 6.92% of Cairn's current issued ordinary share
capital.

The affiliates and registered shareholders to which this notification relates
and the number of shares held by the registered holders at the date hereof is
as follows:-

REGISTERED HOLDER                                   NUMBER OF SHARES

Affiliate:  Capital International S.A.

Chase Nominees Limited                                   152,500

Affiliate:  Capital Research and Management Company

State Street Nominees Limited                         10,030,000
                                                      ----------
                                                      10,182,500
                                                      ==========