Holding(s) in Company

Cairn Energy PLC
31 March 2006





FOR IMMEDIATE RELEASE

                                                                  31 March 2006

                           Cairn Energy PLC ('Cairn')

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


On 31 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 22,493,635 ordinary shares of 10 pence each in
Cairn, representing approximately 14.06% 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 27 March 2006 (if known) were as
follows:-

                                               Number of     Nature of Interest
Registered Holder                              Shares

Nutraco Nominees Limited (Des & Undes)          12,153,409   Non-beneficial
Britel (MAM) Nominees Limited                      623,592   Non-beneficial
Treasury of the Government of the Isle of Man      219,230   Non-beneficial
Nominess A/C 5
Treasury of the Government of the Isle of Man      353,893   Non-beneficial
Nominees A/C 10
Stamford Nominees Limited                            6,000   Non-beneficial
Merrill Lynch Pensions Nominees Ltd                 12,187   Beneficial
Merrill Lynch Pensions Nominees Ltd A/C
Noncert                                          1,061,630   Beneficial
Other Names                                      8,063,694   Non-beneficial
                                                22,493,635       14.06%








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