Holding(s) in Company

Cairn Energy PLC
21 September 2005



FOR IMMEDIATE RELEASE

                                                              21 September 2005


                           Cairn Energy PLC ('Cairn')

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

On 20 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 19,088,450 ordinary shares of 10 pence each in
Cairn, representing approximately 11.95% 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 16 September (if known) were as
follows:-

Registered Holder                         Number of      Nature of Interest
                                          Shares

Nutraco Nominees Limited (Des & Undes)      10,374,317   Non-beneficial
Possfund (MAM) Nominees Ltd                    470,725   Non-beneficial
Britel (MAM) 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
Stamford Nominees Limited                        1,000   Non-beneficial
Merrill Lynch Pensions Nominees Ltd A/C
Noncert                                      1,019,927   Beneficial
Other Name(s)                                6,289,049   Non-beneficial
                                            19,088,450   11.95%


                      This information is provided by RNS
            The company news service from the London Stock Exchange
    
HOLGGGZLGMDGKZM