Holding(s) in Company

Cairn Energy PLC
29 March 2006


FOR IMMEDIATE RELEASE


29 March 2006

                           Cairn Energy PLC ('Cairn')


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


On 28 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 21,683,403 ordinary shares of 10 pence each in
Cairn, representing approximately 13.56% 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 21 March 2006 (if known) were as
follows:-

                                               Number of     Nature of Interest
Registered Holder                              Shares

Nutraco Nominees Limited (Des & Undes)          11,942,364   Non-beneficial

Merrill Lynch Pension Nominees Limited           1,057,303   Beneficial
A/C Noncert

Merrill Lynch Pensions Nominee                      12,187   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      219,230   Non-beneficial
Nominess A/C 5

Treasury of the Government of the Isle of Man      353,893   Non-beneficial
Nominees A/C 10

Other Names                                      6,899,040   Non-beneficial

                                                21,683,403               13.56%



In addition to the interests noted above, and also on 28 March 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 15 March 2006.

Company                                         Number of Shares

Merrill Lynch & Co., Inc                                               792,832

Merrill Lynch Group, Inc                                                13,189


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