Holding(s) in Company

Cairn Energy PLC
13 January 2005


FOR IMMEDIATE RELEASE

                                                                 13 January 2005

                           Cairn Energy PLC ('Cairn')

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

On 12 January 2005, Cairn was notified by Merrill Lynch & Co., Inc., on behalf
of itself and certain holding companies  of Merrill Lynch Investment Managers
Group Limited and of certain other companies, that they had an aggregate
interest  in 19,882,016 ordinary shares of 10 pence each in Cairn, representing
approximately 12.50% of Cairn's current issued  ordinary share capital.

The registered holders to which this notification related and the number of
shares held by those registered holders as  at 10 January 2005 (if known) were
as follows:-

REGISTERED HOLDER                       NUMBER OF SHARES   NATURE OF INTEREST
(IF KNOWN)

Nutraco Nominees Limited (Des & Undes)        11,396,530   Non-beneficial

Merrill Lynch Pension Nominees Limited
A/C Noncert                                    1,165,831   Beneficial

Stamford Nominees Limited A/C Charty              17,908   Non-beneficial

Stamford Nominees Limited (Undes)                    500   Non-beneficial

Possfund Nominees Limited                        792,625   Non-beneficial

Britel Nominees Limited                          962,497   Non-beneficial

Treasury of the Government of the Isle
of Man Nominees A/C 5                            169,700   Non-beneficial

Treasury of the Government of the Isle
of Man Nominees A/C 10                            80,800   Non-beneficial

Morgan Nominees Limited                          233,758   Non-beneficial

State Street Nominees Limited                    165,147   Non-beneficial

Chase Nominees Limited                           605,308   Non-beneficial

Nortrust Nominees Limited                      1,002,490   Non-beneficial

Bank of New York Nominees Limited                191,953   Non-beneficial

Mellon Nominees Limited                           19,400   Non-beneficial

Other Names                                    3,077,569   Non-beneficial

                                              19,882,016                 12.50%


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