Filed pursuant to Rule 424(b)(3)
                                                    Registration No. 333-107806
                                                 Registration No. 333-107806-01
                                 Zero Coupon Senior Exchangeable Notes Due 2023
                                                          CUSIP No. 629568 AJ 5


                            NABORS INDUSTRIES, INC.
                             NABORS INDUSTRIES LTD.

               PROSPECTUS SUPPLEMENT NO. 7 DATED AUGUST 18, 2004
                      TO PROSPECTUS DATED AUGUST 21, 2003

            This prospectus supplement supplements the prospectus dated August
21, 2003 of Nabors Industries, Inc. and Nabors Industries Ltd., as supplemented
on September 23, 2003, November 3, 2003, December 12, 2003, January 21, 2004,
February 23, 2004 and March 31, 2004 relating to the resale from time to time
by selling securityholders of Nabors Industries, Inc.'s Zero Coupon Senior
Exchangeable Notes Due 2023. You should read this prospectus supplement in
conjunction with the prospectus, and this prospectus supplement is qualified by
reference to the prospectus, as supplemented, except to the extent that the
information in this prospectus supplement supersedes the information contained
in the prospectus.

            The selling securityholders table on pages 43-45 of the prospectus
is amended by this supplement no. 7 to add the following entity as a selling
securityholder:



                                          PRINCIPAL AMOUNT
                                        AT MATURITY OF NOTES              PERCENTAGE OF
SELLING SECURITYHOLDER             BENEFICIALLY OWNED AND OFFERED       OUTSTANDING NOTES
----------------------             ------------------------------       -----------------
                                                                  
Ferox Master Fund Limited (1)          $       1,000,000                        *


         INVESTING IN THE NOTES INVOLVES RISKS THAT ARE DESCRIBED IN THE
SECTION ENTITLED "RISK FACTORS" BEGINNING ON PAGE 6 OF THE PROSPECTUS.

         NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE
SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED
UPON THE ADEQUACY OR ACCURACY OF THIS PROSPECTUS SUPPLEMENT. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.

           The date of this prospectus supplement is August 18, 2004.




-----------------
 *  Less than 1%.
(1) The securityholder has informed us that there is no natural person with
    voting or investment power over the respective notes.