Director Shareholding

Cairn Energy PLC
9 May 2002


FOR IMMEDIATE RELEASE


9 May 2002


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

                         Directors' Interests in Shares


Cairn announces that it has been notified by the Trustee of the Company's Long
Term Incentive Plan ('LTIP') that, following the vesting of 1,326,844 Ordinary
Shares in the Company on 4 May 2002, a total of 663,424 Ordinary Shares were
today transferred out of the Trust to the Executive Directors of the Company.
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.

The Executive Directors' have subsequently sold a total of 638,154 Ordinary
Shares at a price of £3.415 per share. In addition, Kevin Hart today exercised
options over 100,000 Ordinary Shares pursuant to the Company's 1996 Second Share
Option Scheme and subsequently sold 60,000 shares at a price of £3.415 per
share.

Details of the shares vesting, options exercised, share sales and the resulting
effect on the Directors' shareholdings are set out below.


                                              Shares Vesting/                                     % of Issued
                                                  Options                                        Share Capital
                                                 Exercised
                                 Previous                      Shares Sold     New Shareholding
                               Shareholding
      Director
Bill Gammell                      562,000          425,461        187,461            800,000         0.538
Kevin Hart                         30,000          400,461        210,231            220,230         0.148
Dr Mike Watts                      50,000          300,461        150,231            200,230         0.135
Malcolm Thoms                     146,999          300,461        150,231            297,229         0.200



Details of the initial Awards and Ordinary Shares vesting pursuant to the LTIP
are set out in the tables below.


                                                                                          Tier Two
                                                                                       Notional Share
                                                                Tier One                Appreciation
                                                              Share Award                  Units
         Director                 Date of Award                 @ £1.30                   @ £1.30


Bill Gammell                       4 May 1999                    250,000                  400,000
Kevin Hart                         4 May 1999                    125,000                  400,000
Dr Mike Watts                      4 May 1999                    125,000                  400,000
Malcolm Thoms                      4 May 1999                    125,000                  400,000



                                                                Tier One                  Tier Two
                                                                Ordinary                  Ordinary
                                                             Shares Vesting            Shares Vesting
         Director                Date of Vesting                @ £3.415                  @ £3.415


Bill Gammell                       4 May 2002                    250,000                  175,461
Kevin Hart                         4 May 2002                    125,000                  175,461
Dr Mike Watts                      4 May 2002                    125,000                  175,461
Malcolm Thoms                      4 May 2002                    125,000                  175,461



Details of the options exercised by Kevin Hart are set out below.

          Date of Grant            Number of Options        Exercise Price


         2 September 1998                100,000                 £1.10


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

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

Bill Gammell                   800,000           0.538          205,000         384,000         447,000
Kevin Hart                     220,230           0.148          100,000         291,000         293,000
Dr Mike Watts                  200,230           0.135           80,000         291,000         293,000
Malcolm Thoms                  297,229           0.200           60,000         281,000         293,000


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