Holding(s) in Company

Cairn Energy PLC
03 February 2006


FOR IMMEDIATE RELEASE                      
                                                                 3 February 2006


                           Cairn Energy PLC ('Cairn')

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

On 3 February 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 18,123,669 ordinary shares of 10 pence each in
Cairn, representing approximately 11.34% 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 31 January 2006 (if known) were as
follows:-

                                                 Number of  Nature of Interest
Registered Holder                                   Shares

Nutraco Nominees Limited (Des & Undes)           9,684,271   Non-beneficial
Merrill Lynch Pension Nominees Limited A/C
Noncert                                            838,802   Beneficial
Merrill Lynch Pensions Nominee                       5,079   Non-beneficial
Stamford Nominees Limited (Undes)                    6,000   Non-beneficial
Possfund Nominees Limited                          569,794   Non-beneficial
Britel Nominees Limited                            623,592   Non-beneficial
Treasury of the Government of the Isle of Man      182,830   Non-beneficial
Nominess A/C 5
Treasury of the Government of the Isle of Man      226,893   Non-beneficial
Nominees A/C 10
Other Names                                      5,986,408   Non-beneficial
                                                18,123,669       11.34%



In addition to the interests noted above, and also on 3 February 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 31 January 2006.

Company                                         Number of Shares

Merrill Lynch & Co., Inc                        1,175,579
Merrill Lynch Group, Inc                           13,075




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