EXHIBIT 99.1


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(NABORS INDUSTRIES LOGO)                                            NEWS RELEASE

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                   NABORS' HURRICANE KATRINA DAMAGE ASSESSMENT


HAMILTON, BERMUDA, SEPTEMBER 1, 2005, NABORS INDUSTRIES LTD. (AMEX: NBR), today
announced the results of its preliminary assessment of damage incurred during
Hurricane Katrina. Nabors had four rigs either directly or immediately east of
the eye path and has ascertained, based upon initial observations, that three of
the rigs escaped with little damage. The company has established that its
SuperSundowner(TM) Rig XII (SSDXII) was lost when the platform upon which it was
working was lost to the storm. Minimal damage has been observed on one of the
company's workover jackups, Dolphin 110, primarily attributable to water
intrusion through blown-out windows in the pilothouse and quarters. Plans are
under way to move the rig to a dock for closer inspection and repairs on the
quarters, a full mast inspection and potential repairs to one leg. Nabors has
also been able to survey its Gulf of Mexico operations center at Harvey,
Louisiana and has ascertained that the office building did experience some roof
damage which allowed rain water intrusion but did not experience any significant
flooding. The Company does not expect to be able to resume normal use of the
facility however, until land access and power are restored, and currently is
operating out of its New Iberia, Louisiana facility. The company expects that
the loss of SSDXII and the extent of repairs on Dolphin 110, net of insurance
proceeds, will not have a material adverse effect on its financial statements.

The Nabors companies own and operate almost 600 land drilling and approximately
875 land workover and well-servicing rigs worldwide. Offshore, Nabors operates
43 platform rigs, 19 jack-up units and three barge rigs in the United States and
multiple international markets. Nabors markets 28 marine transportation and
supply 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.

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 Hamilton, Bermuda at
(441) 292-1510 or via email at dan.mclachlin@nabors.com.