Holding(s) in Company

Cairn Energy PLC
09 December 2005



FOR IMMEDIATE RELEASE

9 December 2005


                           Cairn Energy PLC ('Cairn')

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

On 9 December 2005, Cairn was notified by Merrill Lynch Investment Managers
Group Limited ('MLIM') on behalf of itself and certain of its subsidiaries, that
they had an aggregate interest in 18,806,728 ordinary shares of 10 pence each in
Cairn, representing approximately 11.77% 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 5 December (if known) were as
follows:-

Registered Holder                        Number of      Nature of Interest
                                         Shares

Nutraco Nominees Limited (Des & Undes)      9,856,201   Non-beneficial

Merrill Lynch Pension Nominees Limited
A/C Noncert                                   846,175   Beneficial

Stamford Nominees Limited (Undes)               1,000   Non-beneficial

Possfund Nominees Limited                     569,794   Non-beneficial

Britel Nominees Limited                       693,592   Non-beneficial

Treasury of the Government of the Isle
of Man
Nominess A/C 5                                182,830   Non-beneficial

Treasury of the Government of the Isle
of Man
Nominees A/C 10                               126,893   Non-beneficial

Other Names                                 6,530,243   Non-beneficial

                                           18,806,728   11.77%

In addition to the interests noted above, and also on 9 December 2005, Cairn was
notified by Merrill Lynch & Co., Inc that it and Merrill Lynch Group, Inc (both
of which are holding companies of MLIM) held the following interests in Cairn
shares as at 5 December 2005.

Company                                                       Number of Shares

Merrill Lynch & Co., Inc                                               421,491
Merrill Lynch Group, Inc                                                18,956


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