Director/PDMR Shareholding

Cairn Energy PLC
13 October 2006






FOR IMMEDIATE RELEASE



                                                               13 October 2006







                  Cairn Energy PLC ('Cairn' or 'the Company')


 Purchase of Shares by Person Discharging Managerial Responsibilities ('PDMR')



Cairn announces that Rahul Dhir, Chief Executive Officer of Cairn India Limited,
has today purchased a total of 2,900 Ordinary Shares of 10 pence each in the
Company. Mr Dhir purchased 1,450 shares at a price of £18.34 per share and a
further 1,450 shares at a price of £18.38 per share.


Following this announcement, Rahul Dhir's beneficial interest in Cairn's issued
ordinary share capital is as follows:-

Previous Shareholding  Shares Purchased  New Shareholding  % of Issued Share
                                                               Capital

         0                2,900              2,900              0.0018






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