Holding(s) in Company

Cairn Energy PLC
17 March 2006


FOR IMMEDIATE RELEASE

                                                                 17 March 2006


                           Cairn Energy PLC ('Cairn')

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

On 17 March 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 19,236,926 ordinary shares of 10 pence each in
Cairn, representing approximately 12.04% 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 14 March 2006 (if known) were as
follows:-

                                                 Number of   Nature of Interest
Registered Holder                                   Shares

Nutraco Nominees Limited (Des & Undes)          10,330,947   Non-beneficial
Possfund (MAM) Nominees Limited                    569,794   Non-beneficial
Britel (MAM) Nominees Limited                      623,592   Non-beneficial
Treasury of the Government of the Isle of Man
A/C 5                                              192,930   Non-beneficial
Treasury of the Government of the Isle of Man
A/C 10                                             253,893   Non-beneficial
Stamford Nominees Limited                            6,000   Non-beneficial
Merrill Lynch Pensions Nominees Limited              7,887   Beneficial
Merrill Lynch Pensions Nominees Limited            921,992   Beneficial
A/C Noncert
Other Names                                      6,329,891   Non-beneficial
                                                19,236,926     12.04%







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