Holding(s) in Company

Cairn Energy PLC
02 March 2005


FOR IMMEDIATE RELEASE

2 March 2005

Cairn Energy PLC ('Cairn')

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

On 1 March 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 
19,927,751 ordinary shares of 10 pence each in Cairn, representing approximately
12.53% 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 25 February 2005 (if known) were
as follows:-

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

Nutraco Nominees Limited (Des & Undes)        11,082,437   Non-beneficial
Merrill Lynch Pension Nominees Limited
A/C Noncert                                    1,194,530   Beneficial
Stamford Nominees Limited A/C Charty              17,908   Non-beneficial
Stamford Nominees Limited (Undes)                    500   Non-beneficial
Possfund Nominees Limited                        929,835   Non-beneficial
Britel Nominees Limited                        1,130,147   Non-beneficial
Treasury of the Government of the Isle
of Man Nominees A/C 5                            213,000   Non-beneficial
Treasury of the Government of the Isle
of Man Nominees A/C 10                           101,300   Non-beneficial
Morgan Nominees Limited                          285,558   Non-beneficial
State Street Nominees Limited                    156,666   Non-beneficial
Chase Nominees Limited                           600,608   Non-beneficial
Nortrust Nominees Limited                      1,002,340   Non-beneficial
Bank of New York Nominees Limited                212,453   Non-beneficial
Other Names                                    3,000,469   Non-beneficial
                                              19,927,751   12.53%


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