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                                                                    EXHIBIT 99.1

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[NABORS INDUSTRIES LOGO]
NABORS INDUSTRIES                                                   NEWS RELEASE

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               NABORS EXPECTS $0.10 TO $0.12 EPS IN THIRD QUARTER

HOUSTON, TEXAS, OCTOBER 1, 2002, NABORS INDUSTRIES LTD. (AMEX: NBR), today
indicated that it expects its third and fourth quarter results to be lower than
current consensus estimates. Nabors currently estimates its earnings per diluted
share will be in the range of $0.10 to $0.12 for third quarter with moderate
improvement in the fourth quarter of 2002. These estimates do not include any
effects from the reincorporation of the Company in June of this year.

Gene Isenberg, Nabors Chairman and Chief Executive Officer commented on the
revised near-term outlook. "We are beginning to see concrete signs of an
improving market early next year, but our short-term expectations are
significantly lower as the previously anticipated second half 2002 increases in
North American gas related activity have not yet materialized. The biggest drop
in our short-term outlook is in Canada where our increased presence has
exacerbated the effect on our results of the unusually severe seasonal as well
as cyclical weakness this year. Lower expectations for our US Lower 48 drilling
and offshore Gulf of Mexico operations are nearly as significant as Canada with
most of our other US 48 businesses modestly lower. In the US Lower 48, the
delayed recovery in US land drilling activity has been compounded by the recent
cessation of a number of higher margin long-term wells. While we still expect a
modest upturn in the US Gulf, it appears that it will not develop at the pace we
previously expected.

"We remain convinced that the implications of declining production of North
American gas will reassert itself with increased emphasis early next year,
despite our lowered expectations for the remainder of 2002. In fact, in Canada
and Alaska we are seeing solid evidence of increasing rig activity early in the
new-year. An improving market in Canada has consistently been a leading
indicator of an impending upturn in our US-based businesses.
Meanwhile, the momentum in our International business is continuing."

The Nabors companies own and operate almost 600 land drilling and 933 land
workover and well-servicing rigs worldwide. Offshore, Nabors time charters 44
platform, 17 jack-ups, and three barge rigs in the domestic and international
markets. Nabors also operates 30 marine transportation and support vessels,
primarily in the Gulf of Mexico. In addition, Nabors manufactures top drives and
drilling instrumentation systems and provides comprehensive oilfield hauling,
engineering, civil construction, logistics and facilities maintenance, and
project management services. Nabors participates in most of the significant oil,
gas and geothermal markets in the world.

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NABORS INDUSTRIES LTD. STOCK IS LISTED ON THE AMERICAN STOCK EXCHANGE (NBR). FOR
FURTHER INFORMATION OR TO REQUEST INVESTOR MATERIALS PLEASE CONTACT NABORS
CORPORATE SERVICES INC. MR. DENNIS A. SMITH, DIRECTOR OF CORPORATE DEVELOPMENT
AT (281) 775-8038. TO REQUEST INVESTOR MATERIALS, CALL ANGELA RIDGELL AT (281)
775-8063.


