Holding in Company

Cairn Energy PLC
21 December 2000

                          Cairn Energy PLC ('Cairn')                          
                                                                           
  Notification of Shareholding - Companies Act 1985  ss.198-202 (as amended)

Cairn was notified on 20 December 2000 by Deutsche Bank AG London on behalf of
Deutsche Bank AG that Deutsche Bank AG and its subsidiaries have in aggregate
an interest in 17,027,413 Ordinary Shares of 10p each in Cairn, representing
11.57% of Cairn's current issued ordinary share capital.

The registered shareholders to which this notification relates and the number
of shares held by the registered holders at the date of notification is as
follows:-

REGISTERED HOLDER                                   NUMBER OF SHARES


Morgan Grenfell & Co. Limited a/c Library                      5          
Morgan Nominees Limited                                5,888,632
Morgan Nominees Limited a/c 131                        5,572,426
Morgan Nominees Limited a/c SL                           675,000
CSFB Depositary                                          100,000
MSS Nominees                                             260,000
Nortrust Nominees                                      1,302,657
Perry Nominees                                            60,000
Royal Bank of Scotland Trust Nominees                  2,025,836
State Street Nominees                                  1,142,857
                                                      ----------
                                                      17,027,413
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