Production Sharing Contract for New Indian Block

Cairn Energy PLC
12 April 2000

                        
                              CAIRN ENERGY PLC                               
                                                                              
  Signature of Production Sharing Contract ('PSC') for New Indian Block       
 
Cairn Energy PLC announces that its wholly-owned subsidiary, Cairn Energy
India Pty Limited ('CEI') has today signed a PSC with the Government of India
for Block KG-DWN-98/2 ('the Block') offshore Eastern India in the
Krishna-Godavari Basin ('K-G Basin'). 

The Block lies to the south of the producing Ravva oil and gas field and
adjacent to Block KG-OS/6, both of which are operated by Cairn, thereby
consolidating and complementing the Group's existing interests offshore
Eastern India. 

CEI has a 100% interest in the Block, which covers an area of approximately
9,800 square kilometres and was awarded to CEI by the Government of India on 7
January 2000 pursuant to India's New Exploration Licensing Policy. 

Cairn expects to commence a 3D seismic programme in the northern third of the
Block within a matter of days to define drilling targets for the first phase
of the exploration programme under the PSC. In addition, 2D seismic data will
be acquired in areas of deeper water on the Block to delineate possible medium
to long term exploration targets.


Dr Mike Watts, Cairn's Exploration Director, commented:

'We are delighted to have signed the PSC for this Block, which contains a
proven hydrocarbon system and  is an important addition to the Group's
exploration portfolio in Eastern India.'


Note:  'Cairn' as referred to above means Cairn Energy PLC and/or its
subsidiaries as appropriate. 


Enquiries:-

Cairn Energy PLC                     Telephone  [phone]

Malcolm Thoms, Group General Manager