Holding(s) in Company

Cairn Energy PLC
03 November 2005


FOR IMMEDIATE RELEASE

                                                                 3 November 2005



                           Cairn Energy PLC ('Cairn')

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

On 2 November 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 19,045,587 ordinary shares of 10 pence each in
Cairn, representing approximately 11.92% 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 28 October (if known) were as
follows:-

Registered Holder                          Number of    Nature of Interest
                                             Shares

Nutraco Nominees Limited (Des & Undes)     10,045,347   Non-beneficial
Merrill Lynch Pension Nominees Ltd A/C
Noncert                                       897,031   Beneficial
Stamford Nominees Limited (Undes)               1,000   Non-beneficial
Possfund Nominees Ltd                         385,681   Non-beneficial
Britel Nominees Limited                       468,036   Non-beneficial
Treasury of the Government of the Isle
of Man Nominess A/C 5                         172,830   Non-beneficial
Treasury of the Government of the Isle
of Man Nominees A/C 10                        214,310   Non-beneficial
Other Name(s)                               6,861,352   Non-beneficial
                                           19,045,587      11.92%

In addition to the interests noted above, and also on 2 November, 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 28 October 2005.

Company                                     Number of 
                                              Shares

Merrill Lynch & Co, Inc                       305,112
Merrill Lynch Group, Inc                        1,274




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