Drilling Report

Cairn Energy PLC
21 March 2001

EMBARGOED UNTIL 1400



                                                                 21 March 2001


                               CAIRN ENERGY PLC


             Update on Drilling Operations Offshore Eastern India


Cairn announces that, due to operational difficulties encountered by the
Energy Searcher drillship while running marine riser and associated equipment
on the KG-A-1 well on Block KG-OS/6 offshore eastern India, there will be a
delay of between one and two months in the drilling of the well.

Remedial works will now be carried out on the drillship at the contractor's
cost to allow the resumption of drilling operations. Cairn will have no
liability for the costs of the drillship during the period of the delay.


Notes to Editors:-


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

 2. Cairn holds a 50% equity interest in Block KG-OS/6 and is Operator for the
    Joint Venture. The remaining 50% is held by Videocon Petroleum Limited.


Enquiries:-

Cairn Energy PLC
Bill Gammell, Chief Executive                        Tel: [phone]
Dr Mike Watts, Exploration Director                  Tel: [phone]
Kevin Hart, Finance Director                         Tel: [phone]

Brunswick Group Limited
Victoria Sabin, Mark Antelme                    Tel: [phone]