Holding(s) in Company

Cairn Energy PLC
17 October 2005



FOR IMMEDIATE RELEASE

                                                                17 October 2005



                           Cairn Energy PLC ('Cairn')

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

On 17 October 2005, Cairn was notified by Zurich Financial Services on behalf of
itself and its subsidiaries, that they had an aggregate interest in 4,882,230
ordinary shares of 10 pence each in Cairn, representing approximately 3.06% 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 17 October 2005 were as follows:

Registered Holder                     Number of    Nature of 
                                         Shares    Interest

BNY (OCS) Nominees Ltd                  103,876   Non-beneficial
Vidacos Nominees Ltd                     93,951   Non-beneficial
Littledown Nominees Ltd               4,684,403   Non-beneficial

                                      4,882,230      3.06%




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