Notification of Shareholding

Cairn Energy PLC
16 January 2007



FOR IMMEDIATE RELEASE


16 January 2007

                           Cairn Energy PLC ('Cairn')

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

Cairn was notified on 16 January 2007 by Legal & General Group plc on behalf of 
itself and its subsidiaries that they had an interest in 9,649,117 ordinary 
shares of 10 pence each in Cairn in aggregate, representing approximately 6.02% 
of Cairn's current issued ordinary share capital.

The registered shareholders to which this notification relates and the number of 
shares held by the registered holders at the date of notification is as follows:

Material Interest                                Number of Shares     Percentage

HSBC Global Custody Nominee (UK) Ltd A/C 914945        17,021
HSBC Global Custody Nominee (UK) Ltd A/C 923363        22,447
HSBC Global Custody Nominee (UK) Ltd A/C 636544        81,584
HSBC Global Custody Nominee (UK) Ltd A/C 775,237       65,000
HSBC Global Custody Nominee (UK) Ltd A/C 942199        351,793
HSBC Global Custody Nominee (UK) Ltd A/C 942229        348,392
HSBC Global Custody Nominee (UK) Ltd A/C 942217        351,143
HSBC Global Custody Nominee (UK) Ltd A/C 942205        351,693
HSBC Global Custody Nominee (UK) Ltd A/C 942175        349,931
HSBC Global Custody Nominee (UK) Ltd A/C 942187        349,875
HSBC Global Custody Nominee (UK) Ltd A/C 775245        376,152
HSBC Global Custody Nominee (UK) Ltd A/C 770286        118,000
HSBC Global Custody Nominee (UK) Ltd A/C 357206        4,093,280
HSBC Global Custody Nominee (UK) Ltd A/C 866197        27,400
HSBC Global Custody Nominee (UK) Ltd A/C 904332        34,543
HSBC Global Custody Nominee (UK) Ltd A/C 916681        8,583
HSBC Global Custody Nominee (UK) Ltd A/C 969995        484,175
HSBC Global Custody Nominee (UK) Ltd A/C 985551        20,770
Citibank, London A/C 6011467727                        900
HSBC Bank PLC A/C 999392                               4,648
HSBC Bank PLC A/C 630608                               86,924
HSBC Bank PLC A/C 630591                               195,619
HSBC Bank PLC A/C 361602                               18,000
HSBC Bank PLC A/C 282605                               988,878
HSBC Bank PLC A/C 360509                               270,432
HSBC Bank PLC A/C 766793                               318,251
HSBC Bank PLC A/C 924434                               21,563
HSBC Bank PLC A/C 924422                               292,120

                                               TOTAL   9,649,117          6.02%


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