Holding(s) in Company

Cairn Energy PLC
26 September 2005



FOR IMMEDIATE RELEASE

26 September 2005



                           Cairn Energy PLC ('Cairn')

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

On 26 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 18,343,428 ordinary shares of 10 pence each in
Cairn, representing approximately 11.49% 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 19 September (if known) were as
follows:-

Registered Holder                         Number of      Nature of Interest
                                          Shares

Nutraco Nominees Limited (Des & Undes)      10,048,049   Non-beneficial
Merrill Lynch Pensions Nominees Ltd A/C
Noncert                                        989,127   Beneficial
Stamford Nominees Limited A/C Charty                 0   Non-beneficial
Stamford Nominees Limited                        1,000   Non-beneficial
Possfund Nominees Ltd                          470,725   Non-beneficial
Britel Nominees Limited                        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)                                5,901,095   Non-beneficial
                                            18,343,428   11.49%

In addition to the interests noted above, and also on 26 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 19 September 2005.

Company                                       Number of Shares

Merrill Lynch & Co, Inc                               718,853
Merrill Lynch Group, Inc                                1,100




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