Cairn Energy Focuses on Western India in 2003

Cairn Energy has said that its focus in 2003 will continue to be the commercialization of its exploration success in Western India. In addition to the progression of the Gauri gas development project, key objectives during the year will be the appraisal of the oil potential on Block CB-OS/2 and of the existing discoveries on Block RJ-ON-90/1, together with further exploration wells on both blocks. The Group is also proceeding toward development of the neighboring Gauri gas field as a satellite to Lakshmi. It is intended that some of the gas development wells planned on the Gauri gas field will be deepened in order to appraise underlying oil zones. An onshore seismic program to identify future exploration drilling locations is currently underway and the offshore 'K' prospect is planned to be drilled in the first half of 2003.

In Eastern India, Cairn's primary objective during 2003 will be to bring in a value adding partner to optimize forward appraisal and development plans for the Group's deep water acreage.