Holding(s) in Company

Cairn Energy PLC
23 December 2004


FOR IMMEDIATE RELEASE

23 December 2004

Cairn Energy PLC ('Cairn')

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

On 23 December 2004, Cairn was notified by Merrill Lynch Investment Managers
Group Limited, on behalf of itself and its  subsidiaries, that they had an
aggregate interest in 19,296,318 ordinary shares of 10 pence each in Cairn,
representing  approximately 12.14% 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 21 December 2004 (if known) were
as follows:-

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

Nutraco Nominees Limited (Des & Undes)        11,341,043   Non-beneficial
Merrill Lynch Pension Nominees Limited
A/C Noncert                                    1,123,331   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                            157,200   Non-beneficial
Treasury of the Government of the Isle
of Man Nominees A/C 10                            75,400   Non-beneficial
Morgan Nominees Limited                          210,458   Non-beneficial
State Street Nominees Limited                    146,347   Non-beneficial
Chase Nominees Limited                           562,461   Non-beneficial
Nortrust Nominees Limited                        965,053   Non-beneficial
Bank of New York Nominees Limited                167,453   Non-beneficial
Other Names                                    2,774,042   Non-beneficial
                                              19,296,318                 12.14%





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