Holding(s) in Company

Cairn Energy PLC
23 March 2006





FOR IMMEDIATE RELEASE


23 March 2006



                           Cairn Energy PLC ('Cairn')


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


On 23 March 2006, 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 20,122,220 ordinary shares of 10 pence each in
Cairn, representing approximately 12.58% 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 15 March 2006 (if known) were as
follows:-

                                               Number of     Nature of Interest
Registered Holder                              Shares

Nutraco Nominees Limited (Des & Undes)          10,945,999   Non-beneficial
Merrill Lynch Pension Nominees Limited             987,223   Beneficial
A/C Noncert
Merrill Lynch Pensions Nominee                       9,429   Non-beneficial
Stamford Nominees Limited (Undes)                    6,000   Non-beneficial
Possfund Nominees Limited                          569,794   Non-beneficial
Britel Nominees Limited                            623,592   Non-beneficial
Treasury of the Government of the Isle of Man      200,630   Non-beneficial
Nominess A/C 5
Treasury of the Government of the Isle of Man      283,093   Non-beneficial
Nominees A/C 10
Other Names                                      6,496,460   Non-beneficial
                                                20,122,220       12.58%



In addition to the interests noted above, and also on 23 March 2006, 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 15 March 2006.

Company                                         Number of Shares

Merrill Lynch & Co., Inc                            792,832
Merrill Lynch Group, Inc                             19,646




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