Disposal

Cairn Energy PLC
20 October 2000


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

                   Sale of Energy Explorer IV Drilling Rig                    

Further to the announcement made on 20 September 2000, Cairn announces that
its wholly-owned subsidiary, Energy Explorer Ltd. today completed the sale of
its offshore drilling rig, the Energy Explorer IV, for a price of US$22.25
million in cash.

Enquiries:-

Cairn Energy PLC:                     

   
Kevin Hart, Finance Director                   Tel: [phone]


Brunswick Group Limited:

Victoria Sabin                                 Tel: [phone]
Melissa Miller                                 Tel: [phone]