Holding(s) in Company

Cairn Energy PLC
16 February 2006





FOR IMMEDIATE RELEASE                                          16 February 2006

                           Cairn Energy PLC ('Cairn')


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


On 16 February 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 18,489,327 ordinary shares of 10 pence each in
Cairn, representing approximately 11.57% 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 9 February 2006 (if known) were as
follows:-

                                                 Number of   Nature of Interest
Registered Holder                                   Shares

Nutraco Nominees Limited (Des & Undes)           9,856,047   Non-beneficial
Merrill Lynch Pension Nominees Limited             869,392   Beneficial
A/C Noncert
Merrill Lynch Pensions Nominee                       6,588   Non-beneficial
Stamford Nominees Limited (Undes)                    6,000   Non-beneficial
Possfund Nominees Limited                          569,794   Non-beneficial
Britel Nominees Limited                            623,592   Non-beneficial
Treasury of the Government of the Isle of Man      182,830   Non-beneficial
Nominess A/C 5
Treasury of the Government of the Isle of Man      226,893   Non-beneficial
Nominees A/C 10
Other Names                                      6,148,191   Non-beneficial
                                                18,489,327      11.57%



In addition to the interests noted above, and also on 16 February 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 9 February 2006.

Company                                                       Number of Shares

Merrill Lynch & Co., Inc                                               812,469
Merrill Lynch Group, Inc                                                24,184




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