Holding(s) in Company

Cairn Energy PLC
14 October 2004


FOR IMMEDIATE RELEASE

14 October 2004

Cairn Energy PLC ('Cairn')

Notification of Shareholding - Companies Act 1985 ss.198-202 (as amended)

On 13 October 2004, Cairn was notified by Merrill Lynch Investment Managers
Group Limited, on behalf of itself and its  direct and indirect subsidiaries,
that they had an interest in 16,571,250 ordinary shares of 10 pence each in
Cairn in  aggregate, representing approximately 10.42% of Cairn's current issued
ordinary share capital.

The registered holders to which this notification related and the number of
shares held by those registered holders as  at 11 October 2004 (if known) were
as follows:-

REGISTERED HOLDER                       NUMBER OF SHARES   NATURE OF INTEREST
(IF KNOWN)

Nutraco Nominees Limited (Des & Undes)         9,627,633   Non-beneficial
Merrill Lynch Pension Nominees Limited
A/C Noncert                                      953,591   Beneficial
Stamford Nominees Limited A/C Charty              17,908   Non-beneficial
Stamford Nominees Limited (Undes)                    500   Non-beneficial
Possfund Nominees Limited                        696,425   Non-beneficial
Britel Nominees Limited                          848,397   Non-beneficial
Treasury of the Government of the Isle
of Man Nominees A/C 5                            143,200   Non-beneficial
Treasury of the Government of the Isle
of Man Nominees A/C 10                            68,600   Non-beneficial
Morgan Nominees Limited                          190,458   Non-beneficial
Chase Nominees Limited                           465,457   Non-beneficial
Nortrust Nominees Limited                      1,064,578   Non-beneficial
Bank of New York Nominees Limited                489,611   Non-beneficial
Other Names                                    2,004,892   Non-beneficial

                                              16,571,250   10.42%




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