Holding(s) in Company

Cairn Energy PLC
11 December 2006





FOR IMMEDIATE RELEASE


11 December 2006



                           Cairn Energy PLC ('Cairn')


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


On 11 December 2006, Cairn was notified by Merrill Lynch & Co., Inc that it and
BlackRock Inc had an aggregate interest in 27,709,391 ordinary shares of 10
pence each in Cairn, representing approximately 17.29% of Cairn's current issued
ordinary share capital and held the following interests in Cairn shares as at 11
December 2006.

Company                                                        Number of Shares

Merrill Lynch & Co., Inc                                             3,479,524
BlackRock Group                                                     24,229,867
Aggregated total                                                    27,709,391




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