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                                                                   EXHIBIT 10.20

                             NABORS INDUSTRIES, INC.
                      1998 CHAIRMAN'S EXECUTIVE STOCK PLAN



         1.   Purpose of Plan. The purpose of 1998 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 764,924 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

         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 shall register all the shares underlying the
              options on a Registration Statement on Form S-8 ("S-8") as soon as
              practicable. The Company shall list all the shares underlying the
              options on the American Stock Exchange with an Additional Listing
              Application in accordance with and subject to the American Stock
              Exchange rules which may be in effect from time to time.

              (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.

              (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.




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         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.