Cairn Awaiting Final Approval for Lakshmi Gas Field

Cairn announces that while all necessary approvals and consents in connection with the acquisition of land for onshore processing facilities have been received, the ultimate approval of the Gujarat Cabinet of Ministers has been delayed due to recent changes in the Gujarat State Government.

As a result, the delivery of gas from the Lakshmi field is likely to be delayed beyond July 1, 2002. Cairn, however, currently anticipates that first gas will still be delivered during the third quarter of 2002. Work on the offshore facilities continues and development drilling is currently underway. The buyers of Lakshmi gas have been advised of the potential delay.