The company was founded in 1981 by Sir Bill Gammell, the former international Rugby player, his father James (Jimmy), his brother Pete and others, as Cairn Energy.

Its initial operations were in the USA and, following its listing on the London Stock Exchange in 1988, it expanded into the UK North Sea and internationally (Papua New Guinea, Spain, Vietnam, China and Australia).

[9] This agreement gave the company an interest in Shell's huge acreage position in Rajasthan onshore in North West India.

[10][11] In December 2010, the company agreed to sell a stake of 58.5% of Cairn India, its India-focused subsidiary, to Vedanta Resources for $8.67 billion.

[17] The company holds a portfolio of exploration, development and production assets, currently with interests in the following countries; the UK, Israel, Senegal, Côte d'Ivoire, Mexico and Suriname.