Holding(s) in Company

Cairn Energy PLC
07 September 2005





FOR IMMEDIATE RELEASE


7 September 2005





                           Cairn Energy PLC ('Cairn')


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


On 6 September 2005, Cairn was notified by Merrill Lynch Investment Managers
Group Limited ('MLIM') on behalf of itself and certain of its subsidiaries, that
they had an aggregate interest in 21,227,375 ordinary shares of 10 pence each in
Cairn, representing approximately 13.30% of Cairn's current issued ordinary
share capital.


The registered holders to which this notification relates and the number of
shares held by those registered holders as at 1 September (if known) were as
follows:-

Registered Holder                               Number of     Nature of
                                                Shares        Interest

Nutraco Nominees Limited (Des & Undes)           11,650,337   Non-beneficial
Merrill Lynch Pensions Nominees Ltd A/C           1,052,579   Beneficial
Noncert
Stamford Nominees Limited A/C Charty                 17,908   Non-beneficial
Stamford Nominees Limited (Undes)                     1,000   Non-beneficial
Possfund Nominees Ltd                               744,325   Non-beneficial
Britel Nominees Ltd                                 952,092   Non-beneficial
Treasury of the Government of the Isle of Man       172,830   Non-beneficial
A/C 5
Treasury of the Government of the Isle of Man       189,310   Non-beneficial
A/C 10
Other Name(s)                                     6,446,994   Non-beneficial
                                                 21,227,375           13.30%


In addition to the interests noted above, and also on 6 September, Cairn was
notified by Merrill Lynch & Co, Inc. that it and Merrill Lynch Group Inc. (both
of which are holding companies of MLIM) held the following interests in Cairn
shares as at 1 September 2005.

Company                                        Number of Shares

Merrill Lynch & Co, Inc                                 766,502
Merrill Lynch Group, Inc                                  1,100








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