Holding(s) in Company

Cairn Energy PLC
23 May 2006





FOR IMMEDIATE RELEASE


23 May 2006



                           Cairn Energy PLC ('Cairn')


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


On 22 May 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 23,452,527 ordinary shares of 10 pence each in
Cairn, representing approximately 14.65% 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 May 2006 (if known) were as
follows:-

                                               Number of     Nature of Interest
Registered Holder                              Shares

Nutraco Nominees Limited (Des & Undes)          12,594,724   Non-beneficial
Merrill Lynch Pension Nominees Limited             919,668   Beneficial
A/C Noncert
Merrill Lynch Pensions Nominee                      12,187   Beneficial
Stamford Nominees Limited (Des & Undes)             13,900   Non-beneficial
Britel Nominees Limited                            666,317   Non-beneficial
Treasury of the Government of the Isle of Man      181,380   Non-beneficial
Nominess A/C 5
Treasury of the Government of the Isle of Man      183,493   Non-beneficial
Nominees A/C 10
Other Names                                      8,880,858   Non-beneficial
                                                23,452,527            14.65%



In addition to the interests noted above, and also on 22 May 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 16 May 2006.

Company                                                        Number of Shares

Merrill Lynch & Co., Inc                                               798,034
Merrill Lynch Group, Inc                                                19,646




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