Director Shareholding

Cairn Energy PLC
19 March 2003

FOR IMMEDIATE RELEASE                                              19 March 2003



                  CAIRN ENERGY PLC ('Cairn' or 'the Company')

                         Directors' Interests in Shares


Cairn announces that it has been notified by the Trustees of the Company's Long
Term Incentive Plan ('LTIP') that, following the vesting of 619,055 Ordinary
Shares in the Executive Directors of the Company on 17 March 2003, they have
today authorised the transfer of a total of 309,529 Ordinary Shares out of the
Company's Employees' Share Trust to the Executive Directors.  Under the rules of
the LTIP only 50% of the shares vesting are released with immediate effect. The
balance is withheld and is released to employees after one year.

Details of the shares vesting and the resulting effect on the Directors'
shareholdings are set out below.
                                                                                          
                                                                                             


 Name of                   Previous        Shares Vesting   Shares Sold    New Shareholding   % of Issued
                         Shareholding                                                        Share Capital
 Director

Bill Gammell                800,000           193,622            0             993,622           0.667
Kevin Hart                  220,230           141,811            0             362,041           0.243
Mike Watts                  200,230           141,811            0             342,041           0.230
Malcolm Thoms               297,229           141,811            0             439,040           0.295


Details of the awards and Ordinary Shares vesting under the LTIP are set out in
the tables below.

                                                                                           Tier Two
                                                                                        Notional Share
                                                                     Tier One            Appreciation
   Name of                                                           Share Award              Units
  Director                  Performance Period                      @ £1.371/2              @ £1.371/2

Bill Gammell               8 March 2000 - 8 March 2003                150,000                  100,000
Kevin Hart                 8 March 2000 - 8 March 2003                120,000                   50,000
Mike Watts                 8 March 2000 - 8 March 2003                120,000                   50,000
Malcolm Thoms              8 March 2000 - 8 March 2003                120,000                   50,000



                                                                Tier One                  Tier Two
                                                                Ordinary                  Ordinary
   Name of                                                   Shares Vesting            Shares Vesting
  Director                       Date of Vesting               @ £3.121/2                @ £3.121/2

Bill Gammell                      17 March 2003                 150,000                    43,622
Kevin Hart                        17 March 2003                 120,000                    21,811
Mike Watts                        17 March 2003                 120,000                    21,811
Malcolm Thoms                     17 March 2003                 120,000                    21,811


In addition, the following new awards were made on 18 March 2003 under the LTIP
to the Executive Directors at £3.051/2 per Share (being the mid-market closing
price on 17 March 2003):-


  Name of                                           Number of Ordinary           Number of Notional
 Director                                        Shares under Tier One          Shares under Tier Two

Bill Gammell                                              130,000                      130,000
Kevin Hart                                                 81,000                      130,000
Mike Watts                                                 98,000                      130,000
Malcolm Thoms                                              81,000                      130,000





Following this announcement, the Executive Directors' beneficial interests in
the Ordinary Shares of the Company are as follows:-


                         Number of     % Issued Share
                      Ordinary Shares      Capital
      Name of                                             Number of               Outstanding
                                                           Options
      Director                                                                 Awards under LTIP
                                                                           Tier One        Tier Two

Bill Gammell              993,622           0.667          205,000          364,000         477,000
Kevin Hart                362,041           0.243          100,000          252,000         373,000
Mike Watts                342,041           0.230             80,000        269,000         373,000
Malcolm Thoms             439,040           0.295             60,000        242,000         373,000





Cairn also announces that Norman Murray, Chairman purchased 10,000 Ordinary
Shares of 10p each in the Company on 18 March 2003 at a price of £3.07 per
share.  Mr Murray's beneficial interests in the Company's issued ordinary share
capital are now as follows:




      Name of              Previous         Shares Purchased            New                   %
      Director           Shareholding                                 Holding              Interest

Norman Murray               50,000               10,000                60,000                0.04




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