Holding(s) in Company

Cairn Energy PLC
02 May 2006





FOR IMMEDIATE RELEASE


                                                                      2 May 2006



                           Cairn Energy PLC ('Cairn')


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


On 28 April 2006, 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 23,306,332 ordinary shares of 10 pence each in
Cairn, representing approximately 14.56% 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 20 April 2006 (if known) were as
follows:-

                                               Number of     Nature of Interest
Registered Holder                              Shares

Nutraco Nominees Limited (Des & Undes)          12,213,723   Non-beneficial
Merrill Lynch Pension Nominees Limited             938,794   Beneficial
A/C Noncert
Merrill Lynch Pensions Nominee                      12,187   Beneficial
Stamford Nominees Limited (Undes)                   10,000   Non-beneficial
Britel Nominees Limited                            666,317   Non-beneficial
Treasury of the Government of the Isle of Man      219,230   Non-beneficial
Nominess A/C 5
Treasury of the Government of the Isle of Man      353,893   Non-beneficial
Nominees A/C 10
Other Names                                      8,892,188   Non-beneficial
                                                23,306,332      14.56%



In addition to the interests noted above, and also on 28 April 2006, 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 20 April 2006.

Company                                                       Number of Shares

Merrill Lynch & Co., Inc                                               804,385
Merrill Lynch Group, Inc                                                19,646




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