Holding(s) in Company

Cairn Energy PLC
08 December 2004


FOR IMMEDIATE RELEASE

                                                                 8 December 2004

                             Cairn Energy PLC ('Cairn')

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

On 7 December 2004, Cairn was notified by Merrill Lynch & Co., Inc, on behalf of
itself and certain holding companies  of Merrill Lynch Investment Managers
Limited and of certain other companies, that they had an aggregate interest in 
18,397,149 ordinary shares of 10 pence each in Cairn, representing approximately
11.57% 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 3 December 2004 (if known) were
as follows:-

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

Nutraco Nominees Limited (Des & Undes)        10,976,120   Non-beneficial
Merrill Lynch Pension Nominees Limited
A/C Noncert                                    1,104,031   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                           517,616   Non-beneficial
Nortrust Nominees Limited                      1,071,563   Non-beneficial
Bank of New York Nominees Limited                156,453   Non-beneficial
Other Names                                    2,605,878   Non-beneficial

                                              18,397,149   11.57%





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