Statement re NELP V

Cairn Energy PLC
26 July 2005



                                                                  26th July 2005

                                CAIRN ENERGY PLC

                 Cairn awarded new exploration blocks in India

The Government of India (GOI) has announced that Cairn has been awarded five new
exploration blocks in India. The blocks were awarded to Cairn and its joint
venture partners under the fifth New Exploration Licensing Policy round (NELP
V).

There was an unprecedented level of international interest for this latest round
of licences. In competitive bidding there were a total of 69 bids for 20
exploration blocks with bids from 26 foreign companies including Cairn.

Cairn has been awarded five onshore and offshore blocks, including two new areas
in Rajasthan. The blocks are as follows:

• RJ-ONN-2003/1 Onshore Western Rajasthan, Rajasthan Basin
  Cairn (30%), ONGC (36%) and ENI (34%, operator)

• VN-ONN-2003/1 Onshore Eastern Rajasthan, Vindhyan Basin
  Cairn (49%, operator) and ONGC (51%)

• KG-ONN-2003/1 Onshore Andhra-Pradesh, Krishna-Godavari Basin
  Cairn (49%, operator) and ONGC (51%)

• GV-ONN-2003/1 Onshore Uttar Pradesh, Ganga Valley Basin
  Cairn (49%, operator) and ONGC (51%)

• GS-OSN-2003/1 Offshore Gujarat, Saurashtra Basin
  Cairn (49%) and ONGC (51%, operator)

Bidding for the blocks closed on 31st May 2005. The GOI has indicated, subject 
to finalisation of contract, that the signing of the Production Sharing 
Contracts will take place by 2nd October 2005, enabling initial work to commence 
in 2006.


Bill Gammell, Chief Executive of Cairn said:

'We are delighted to have secured these new blocks as India continues to offer
attractive exploration opportunities.'

Enquiries to:

Cairn Energy PLC:
Analysts
Bill Gammell, Chief Executive                 Tel: [phone]
Mike Watts, Exploration Director
Kevin Hart, Finance Director

Media
David Nisbet, Head of Group Communications

Brunswick Group LLP:
Patrick Handley, Mark Antelme                 Tel: [phone]

Notes to Editors:

   • Cairn focuses its activities on the geographic region of South Asia. The
     Group holds material exploration and production positions in west India,
     east India and Bangladesh along with new exploration rights in northern
     India and Nepal.

   • This focus on South Asia for more than ten years has already resulted in
     a significant number of oil and gas discoveries. In particular, the company
     made a major oil discovery (Mangala) in Rajasthan in the north west of 
     India at the beginning of 2004.

   • ONGC took up its option to acquire a 30% participating interest in the
     Mangala and Aishwariya discoveries in January 2005. ONGC partners Cairn in
     all its blocks in India.

   • India currently imports approximately two million barrels of oil a day
     (bopd). It produces 650,000 barrels a day itself of which 50,000 bopd comes
     from the Cairn operated Ravva field.

For further information on Cairn see www.cairn-energy.plc.uk

There are matters discussed in this media information that are forward looking
statements. Such statements are only predictions and actual events or results
may differ materially. For a discussion of important factors which could cause
actual results to differ from the forward looking statements, refer to the
Company's annual report and accounts for the year ended 2004.

                      Blocks Awarded to Cairn under NELP V


                      This information is provided by RNS
            The company news service from the London Stock Exchange