8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT

     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


      Date of Report (Date of earliest event reported): September 20, 2004

                             NABORS INDUSTRIES LTD.
             (Exact name of registrant as specified in its charter)


           Bermuda                     000-49887                 980363970
(State or Other Jurisdiction          (Commission              (IRS Employer
      of Incorporation)               File Number)           Identification No.)


2nd Fl. International Trading Centre
Warrens
PO Box 905E
St. Michael, Barbados                                               N/A
(Address of Principal Executive Offices)                         (Zip Code)

        Registrant's telephone number, including area code (246) 421-9471

                                       N/A
          (Former name or former address, if changed since last report)






ITEM 8.01.  OTHER EVENTS.

            Attached hereto as Exhibit 99.1 is a copy of the press release dated
September 20, 2004 issued by Nabors Industries Ltd.

ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS.

            (c)   Exhibits

                  Exhibit No.         Description
                  -----------         -----------

                  99.1                Press Release of Nabors Industries Ltd.
                                      dated September 20, 2004.

            Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.


                                    NABORS INDUSTRIES LTD.


Date: September 20, 2004            By: /s/ Daniel McLachlin
                                       -----------------------------------------
                                       Daniel McLachlin
                                       Vice President-Administration & Secretary


                                       2




                                  EXHIBIT INDEX



Exhibit No.          Description
- -----------          -----------

99.1                 Press Release of Nabors Industries Ltd. dated
                     September 20, 2004.


                                       3

EX-99.1

                                                                    EXHIBIT 99.1

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(NABORS INDUSTRIES LOGO)
                                                                    NEWS RELEASE
- --------------------------------------------------------------------------------


           NABORS RIG INCURS SIGNIFICANT DAMAGE FROM HURRICANE IVAN -
                         FINANCIAL IMPACT INSIGNIFICANT

ST. MICHAEL, BARBADOS, SEPTEMBER 20, 2004, NABORS INDUSTRIES LTD. (AMEX: NBR),
today announced that one of its offshore platform rigs sustained extensive
damage during hurricane Ivan. The rig involved was a 1,000 horsepower platform
workover/reentry rig, MODS 141. The rig had been secured and abandoned prior to
the storm and there were no personnel on board at the time. The rig was working
for Murphy Exploration and Production Company on its Medusa SPAR Platform in the
Gulf of Mexico. The rig is covered by both property and business interruption
insurance to the extent that the company expects only a modest impact to its
results. Preliminary indications are that there is no significant damage to the
platform. Nabors personnel are making a more comprehensive assessment of the
extent of the damage and instituting plans to remove the rig from Murphy's
platform as expeditiously as possible so that full production capability can be
restored.

The Nabors companies own and operate almost 600 land drilling and approximately
950 land workover and well-servicing rigs worldwide. Offshore, Nabors operates
45 platform rigs, 19 jack-up units, and three barge rigs in the United States
and multiple international markets. Nabors markets 31 marine transportation and
support vessels, primarily in the U.S. 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.

The information above includes forward-looking statements within the meaning of
the Securities Act of 1933 and the Securities Exchange Act of 1934. Such
forward-looking statements are subject to certain risks and uncertainties, as
disclosed by Nabors from time to time in its filings with the Securities and
Exchange Commission. As a result of these factors, Nabors' actual results may
differ materially from those indicated or implied by such forward-looking
statements.


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For further information, please contact Dennis A. Smith, Director of Corporate
Development of Nabors Corporate Services, Inc. at (281) 775-8038. To request
Investor Materials, call our corporate headquarters in St. Michael, Barbados at
(246) 421-9471 or via email at dan.mclachlin@nabors.com.