Statement re Approval of FDPs

Cairn Energy PLC
30 May 2006

EMBARGOED FOR RELEASE AT 07:00 30 MAY 2006



                                CAIRN ENERGY PLC


                      Approval of Field Development Plans



The Field Development Plans (FDPs) for the Mangala, Aishwariya, Saraswati and
Raageshwari fields in Block RJ-ON-90/1, Rajasthan, North West India have now
been approved by the Management Committee (Directorate General Hydrocarbons,
ONGC and Cairn). This final approval follows the earlier agreement on the FDPs
reached at the joint venture Operating Committee between Cairn and ONGC.


In order to finance its share of the Northern Fields development project, Cairn
is in the process of finalising a $1 billion bank facility which it intends
signing prior to the end of June this year.


Enquiries to:


Cairn Energy PLC:                                  Tel: [phone]

Analysts/Investors

Bill Gammell     Chief Executive

Kevin Hart       Finance Director

Mike Watts       Exploration Director

Media

David Nisbet     Head of Group Communications



Brunswick Group LLP:                                Tel: [phone]

Patrick Handley, Mark Antelme


Notes to Editors:


   •Cairn focuses its activities on the geographic region of South Asia.  The
    Group holds material exploration and production positions in west India,
    east India and Bangladesh along with new exploration rights in India and
    Nepal.


   •This focus on South Asia has already resulted in a significant number of
    oil and gas discoveries.  In particular, the Company made a major oil
    discovery (Mangala) in Rajasthan in the north west of India at the beginning
    of 2004. Cairn has now made 18 discoveries in Rajasthan.


   •In Block RJ-ON-90/1, Cairn operates under a Production Sharing Contract
    (PSC) signed on 15 May 1995. The Development Area (1,858 km2), which
    includes Mangala, Aishawariya, Saraswati and Raageshwari is 70% Cairn with
    ONGC having exercised their back in right for 30%.


   •India currently imports approximately 2,000,000 barrels of oil per day
    (bopd).  It produces approximately 650,000 bopd itself of which 50,000 bopd
    comes from the Cairn operated Ravva field on the east coast of India.


   •Cairn has recently opened a new Indian headquarters at Gurgaon on the
    outskirts of Delhi to provide improved support for the Rajasthan project
    team and to manage the Company's business interests in India.


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



For further information on Cairn see www.cairn-energy.plc.uk

Note: There are matters discussed in this Statement that are forward looking.
All such forward-looking statements are based on our management's assumptions
and beliefs in light of information available to them at this time.  These
forward-looking statements are, by their nature, subject to significant risks
and uncertainties and actual results, performance or achievements may be
materially different from those expressed in such statements.






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