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                                                                      EXHIBIT 11

                    NABORS INDUSTRIES, INC. AND SUBSIDIARIES
                        COMPUTATION OF PER SHARE EARNINGS
                    (In thousands, except per share amounts)


<TABLE>
<CAPTION>
                                                                               Three
                                                                Year Ended   Months Ended
                                                               December 31,  December 31,    Year Ended September 30,

                                                                  1998           1997           1997           1996
                                                               ----------     ----------     ----------     ----------
<S>                                                            <C>            <C>            <C>            <C>       
Basic:
   Weighted average number of shares outstanding                  100,807        100,814         96,034         85,429
                                                               ----------     ----------     ----------     ----------
   Net income                                                  $  124,988     $   41,327     $  114,808     $   70,500
                                                               ----------     ----------     ----------     ----------
   Per share amount                                            $     1.24     $      .41     $     1.20     $      .83
                                                               ----------     ----------     ----------     ----------

Diluted:
   Weighted average number of shares outstanding                  100,807        100,814         96,034         85,429
   Net effect of dilutive stock options and warrants-based
      on the treasury stock method using
      average market price                                          2,231          6,096          6,424          8,323
   Assumed conversion of 5% convertible notes (1)                   9,517          9,517          9,517             --
                                                               ----------     ----------     ----------     ----------
   Total                                                          112,555        116,427        111,975         93,752
                                                               ----------     ----------     ----------     ----------
   Net income                                                  $  124,988     $   41,327     $  114,808     $   70,500
   Add 5% convertable note interest, net 
      of tax effect (1)                                             5,392          1,348          5,606             --
                                                               ----------     ----------     ----------     ----------
   Total                                                       $  130,380     $   42,675     $  120,414     $   70,500
                                                               ----------     ----------     ----------     ----------
   Per share amount                                            $     1.16     $      .37     $     1.08     $      .75
                                                               ----------     ----------     ----------     ----------
</TABLE>


(1)    The 5% convertible notes issued during May 1996 are not included in the
       diluted earnings per share calculation for the year ended September 30,
       1996 because inclusion would have been anti-dilutive.