Holding(s) in Company

Cairn Energy PLC
14 September 2005



FOR IMMEDIATE RELEASE                                        14 September 2005



                           Cairn Energy PLC ('Cairn')

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

On 14 September 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 19,872,488 ordinary shares of 10 pence each in
Cairn, representing approximately 12.45% 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 9 September (if known) were as
follows:-

Registered Holder                        Number of      Nature of Interest
                                         Shares

Nutraco Nominees Limited (Des & Undes)     10,832,004   Non-beneficial
Merrill Lynch Pension Nominees Ltd A/C
Noncert                                     1,068,979   Beneficial
Stamford Nominees Limited A/C Charty            7,508   Non-beneficial
Stamford Nominees Limited (Undes)               1,000   Non-beneficial
Possfund Nominees Ltd                         470,725   Non-beneficial
Britel Nominees Ltd                           571,292   Non-beneficial
Treasury of the Government of the Isle
of Man A/C 5                                  172,830   Non-beneficial
Treasury of the Government of the Isle
of Man A/C 10                                 189,310   Non-beneficial
Other Name(s)                               6,558,840   Non-beneficial
                                           19,872,488       12.45%

In addition to the interests noted above, and also on 14 September, 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 9 September 2005.

Company                                       Number of Shares

Merrill Lynch & Co, Inc                            747,638
Merrill Lynch Group, Inc                             1,100




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