Holding in Company

Cairn Energy PLC
8 March 2001


                                                                  8 March 2001



  Notification of Shareholding - Companies Act 1985 ss.198-202 (as amended)

On 7 March 2001, Cairn was 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 7,426,655 Ordinary Shares of 10p
each in Cairn, representing 5.04% of Cairn's current issued ordinary share
capital. The registered holders to which this notification relates and the
number of shares held by those registered holders as at 7 March 2001 is as
follows:-

                                                             NUMBER OF
REGISTERED HOLDER                                              SHARES       %

Affiliate: Capital International S.A.:-
Chase Nominees Limited                                        152,500
Affiliate: Capital Research and Management Company:-
State Street Nominees Limited                               7,274,155
                                                            7,426,655     5.04