Re Lakshmi Gas Field

Cairn Energy PLC
5 November 2001


FOR IMMEDIATE RELEASE


                                                               5 November 2001

                               CAIRN ENERGY PLC


                 Block CB/OS-2 Offshore Gujarat Western India


                    Lakshmi Gas Field Development Project


Cairn announces that whilst all necessary approvals and consents in connection
with the acquisition of land for onshore processing facilities have been
received, the ultimate approval of the Gujarat Cabinet of Ministers has been
delayed due to recent changes in the Gujarat State Government.


As a result, the delivery of gas from the Lakshmi field is likely to be
delayed beyond 1 July 2002. Cairn however currently anticipates that first gas
will still be delivered during Q3 2002.


Work on the offshore facilities continues, with development drilling currently
underway.


The buyers of Lakshmi gas have been advised of the potential delay.


Enquiries:-


Cairn Energy PLC:


Bill Gammell, Chief Executive                         Tel: [phone]
Simon Thomson, Group Commercial Manager               Tel: [phone]


Brunswick Group Limited:

Victoria Sabin, Mark Antelme, Catherine Bertwistle        Tel: [phone]


Notes to Editors:-


 1. 'Cairn' where referred to in this release means Cairn Energy PLC and/or its
    subsidiaries, as appropriate.


 2. Cairn's holds a 50% interest in the ring-fenced Lakshmi gas discovery in
    Block CB/OS-2. The remaining interests are held by ONGC (40%) and TATA
    Petrodyne Limited (10%).