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                                                                   EXHIBIT 10.17


                            NABORS INDUSTRIES, INC.
                      1996 CHAIRMAN'S EXECUTIVE STOCK PLAN



1.  Purpose of Plan.  The purpose of 1996 Chairman's Executive Stock Plan (the
    "Plan")  is (i) to provide an incentive for the Chairman of the Board,
    ("Covered Employee") of Nabors Industries, Inc. ("Nabors" or the "Company")
    by encouraging ownership of the Company's common stock, $.10 par value,
    (the "Common Stock"), and (ii) to aid the Company in retaining such officer
    upon whose efforts the Company's success and future growth depends.

2.  Administration.  The Plan shall be administered by an independent committee
    (the "Committee") appointed by the Company's Board of Directors (the
    "Board"), as hereinafter provided.

    The Committee shall be appointed from time to time by the Board and shall
    consist of not fewer than two members.  No member of the Committee shall be
    eligible to participate in the Plan while serving as a member of the
    Committee.  All members of the Committee shall be "disinterested persons"
    as defined by Rule 16b-3 of the Securities Exchange Act of 1934, as amended
    (the "34 Act") or any successor thereto.  The Board shall designate one of
    the members of the Committee as the Committee Chairman.  The Committee
    shall hold its meetings at such times and places as it may determine.  A
    majority of its members shall constitute a quorum.  All determinations of
    the Committee shall be made by a majority of its members.  Any decision or
    determination reduced to writing and signed by all members shall be
    effective as if made by a majority vote at a meeting duly called and held.
    The Committee may appoint a secretary (who need not be a member of the
    Committee).  For purposes of administration, the Committee, subject to the
    terms of the Plan, shall have final authority to establish such rules and
    regulations, and take such other administrative actions as it deems
    necessary or advisable.  All determinations and interpretations made by the
    Committee shall be final, conclusive and binding on all persons, including
    persons granted options hereunder ("Optionees") and their legal
    representatives and beneficiaries.  No member of the Committee shall be
    liable for any act or omission with respect to his services on the
    Committee, if he acts in good faith and in a manner he reasonably believes
    to be in or not opposed to the best interests of the Company.

3.  Stock Available for Stock Awards and Option Grants.  There shall be
    available for the grant of options under the Employee Plan a total of
    850,000 Shares of Common Stock.  This amount is subject to any adjustments
    which may be made pursuant to Section 5(f) hereof.  Shares of Common Stock
    with respect to which options are granted under the Plan may be either
    authorized and unissued shares of Common Stock, or previously issued shares
    of Common Stock held in the treasury of the Company, or both.  Shares of
    Common Stock reserved for options which have terminated or expired prior to
    exercise shall be available for further awards or grants.  The principles
    of Section 162(m) of the Internal Revenue Code of 1986, as amended, and the
    regulations thereunder, shall govern.

4.  (a)   Eligibility. Option grants under the Plan may be made to Covered
    Employees.   Stock Options made to a Covered Employee whether or not they
    hold or have held awards or grants previously, under the Plan or otherwise
    granted or assumed by Nabors.  In selecting a Covered Employee to receive
    awards or grants, the Committee may take into consideration any factors it
    may deem relevant, including its estimate of the individual's present and
    potential contributions to the success of the Company.
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    (b)   Description of Compensation.  The maximum amount of compensation
    payable to an employee attributable to the exercise of stock options
    granted under the Plan shall be equal to the maximum number of Shares of
    Common Stock for which options can be granted to an employee multiplied by
    the difference between the Fair Market Value on the date of exercise less
    the exercise price (which is no less than the Fair Market Value on the date
    of the grant of the option).

5.  Terms and Conditions of Stock or Options.  The Committee shall, in its
    discretion, prescribe the terms and conditions of the grants hereunder,
    which terms and conditions need not be the same in each case, subject to
    the following:

    (a) Number of Shares.  Each option grant shall state the number of shares
    of Common Stock to which it pertains.

    (b) Option Exercise Price.  The option exercise price shall be set by the
    Committee, but shall be no less than the Fair Market Value per share of
    Common Stock on the date of the grant of the option.   The option price is
    to be paid, upon exercise, in cash or, in the discretion of the Committee,
    in options or Shares of the Company to be valued at fair market value at
    the time of exercise.  For purposes of the Plan, the Fair Market Value per
    share of Common Stock shall be the last sale price regular way on the date
    of reference, or, in the case no sale takes place on such date, the average
    of the closing high bid and low asked prices regular way, in either case on
    the principal national securities exchange on which the Common Stock is
    listed or admitted to trading or, if the Common Stock is not listed or
    admitted to trading on any national securities exchange, the last sale
    price reported on the National Market System of the National Association of
    Securities Dealers Automated Quotation System ("NASDAQ") on such date, or
    the average of the closing high bid and low asked prices of the Common
    Stock in the over-the-counter market reported on NASDAQ on such date,
    whichever is applicable or, if there are not such prices reported on NASDAQ
    on such date, then as furnished to the Committee by any New York Stock
    Exchange member selected from time to time by the Committee for such
    purpose.  If there is no bid or asked price reported on any such date, the
    market value shall be determined by any other appropriate method selected
    by the Committee.

    (c) Option Period.   The Committee may specify a period for exercise of an
    option (the "Option Period") which period shall in no event be more than
    ten years from the date of grant.  Options may, in the discretion of the
    Committee, be exercisable in installments during the Option Period and such
    installments may be accelerated based upon target prices for Nabors Common
    Stock.  Any shares of Common Stock not purchased on any applicable
    installment date may be purchased thereafter at any time before the
    expiration date of the Option Period subject to Section 5(e) hereof.

    (d) Exercise of Options.  In order to exercise an option, the Optionee
    shall deliver to Nabors written notice specifying the number of shares of
    Common Stock to be purchased, together with a certified or bank cashier's
    check payable to the order of Nabors in the full amount of the purchase
    price therefor; provided, however, that the Committee may, in its
    discretion, allow such payments to be made in whole or in part in Common
    Stock delivered, or options surrendered, by the Optionee valued at the Fair
    Market Value of such Common Stock.

    If the Optionee so requests, shares of Common Stock purchased upon exercise
    of an option may be issued in the name of the Optionee or another person.
    An Optionee shall not have any of the rights of a stockholder until the
    shares of Common Stock are issued to him.  An option may not be exercised
    for less than the lesser of (i) ten shares of Common Stock, or (b) the
    number of shares of Common Stock remaining subject to such option.
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   (e)  Effect of Termination of Employment.  Any option granted hereunder may
   be exercised by the Optionee, his heirs, devisees, legatees or assigns at
   any time before the relevant expiration date, whether or not Optionee ceases
   to be an employee and whether or not such employment is terminated by
   voluntary written resignation, by action of the Company for cause, without
   cause, or by reason of death or disability, with respect to all options as
   to which his right of exercise has vested or as to which his right of
   exercise shall vest in accordance with the next sentence of this paragraph
   on the date of his termination of employment.  In the event of a termination
   of employment for any reason, except by the Company for cause or by
   voluntary resignation by Optionee, all unvested options shall be immediately
   exercisable as of the date of his termination of his employment.  The term
   "for cause" shall be defined by the Committee at the time of the grant of an
   Option pursuant to this Plan.

   (f)  Adjustments.  In the event of a reorganization, recapitalization, stock
   split, stock dividend, Extraordinary Dividend, combination of shares,
   consolidation, merger (other that a merger or consolidation which does not
   result in any reclassification, conversion, exchange or cancellation of
   outstanding shares), any sale or  transfer by the Company of all or
   substantially all of its assets or any tender offer or exchange offer for or
   the acquisition, directly or indirectly, by any person or group of all or a
   majority of the then outstanding voting securities of the Company, rights
   offering, or any other change in the corporate structure or rights with
   respect to any shares of the Company, adjustments shall be made to the
   number or type of stock granted pursuant to this Plan and, in order to
   prevent dilution or enlargement of the rights of Optionee, to the number of
   Options, and the type and option price of stock subject to outstanding
   Options or as provided below with respect to Extraordinary Dividend.  In the
   case of an Extraordinary Dividend, the Optionee shall be entitled to have
   distributed to him upon the exercise of any portion of the option an amount
   equal to the Extraordinary Dividend her would have received had he exercised
   such portion of the option immediately prior  to the declaration of the
   Extraordinary Dividend.  For this purpose, an Extraordinary Dividend shall
   mean any dividend or dividends paid or declared in the twelve month period
   immediately prior to the day after any such declaration in excess in the
   aggregate of 7% of the average Closing Price of the Common Stock during such
   period.

    (g) Registration, Listing and Qualification of Shares of Common Stock.  The
    Company, within six months of the date any opinion granted pursuant to this
    Plan first becomes vested and exercisable, shall register all the shares
    underlying the options on a Registration Statement on Form S-8 ("S-8"). 
    The Company shall also prepare and file a Form S-3 prospectus with such
    S-8.  The Company within six months of the date of any opinion granted
    pursuant to this Plan first becomes vested and exercisable, shall list all
    the shares underlying the options on the American Stock Exchange with an
    Additional Listing Application.  The company may require Optionee to furnish
    to the Company, prior to the issuance of any shares upon the exercise of
    all or any part of this option, an agreement in which Optionee acknowledges
    the status of the shares and the conditions and the restrictions, if any,
    upon their sale or distribution under the applicable securities law.

    (h) Withholding of Taxes.   No option may be exercised, unless the Optionee
    has paid, or has made provision, satisfactory to the Committee for payment
    of, Federal, state and local income taxes, or any other taxes (other than
    stock transfer taxes), which the Company may be obligated to collect as a
    result of the issue or transfer of shares of Common Stock upon exercise of
    an option.  The Committee may authorize that shares of Common Stock or
    options to be applied towards the payment of withholding taxes.

    (i) Transferability.  Options granted pursuant to this Plan may be
    transferred by the Employee with the consent of the Company which shall not
    be unreasonably withheld at any time; provided however, Section 5(e) of
    this Plan shall be applied based on the Employee and his status and not
    that of any assignee.


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    (j) Other Terms and Conditions.  The Committee may impose such other terms
    and conditions, not inconsistent with the terms hereof, on the grant or
    exercise of options, or on the grant of stock, as it deems advisable.

  6.   Stockholder's Rights.  Neither an Optionee nor their respective legal
    representatives, legatees or distributees, as the case may be, shall have
    any of the rights or privileges of a stockholder of the Company by virtue
    of an award of stock, or grant of an Option, except with respect to any
    shares of Common Stock actually issued or transferred of record and
    delivered to one of the aforementioned persons.

  7.   Governing Laws.  The Employee Plan and all rights and
    obligations thereunder shall be construed in accordance with and governed
    by the laws of the State of Delaware.