EXHIBIT 12
NABORS INDUSTRIES, LTD. AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES
(In thousands, except ratio amounts)
<Table>
<Caption>
Year Ended December 31,
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2003 2002 2001
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Income before income taxes $ 174,623 $ 140,774 $ 557,612
Less earnings from affiliates, net of dividends (919) (4,900) (15,833)
Add amortization of capitalized interest 896 843 768
Add fixed charges as adjusted (from below) 74,107 70,341 63,774
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Earnings $ 248,707 $ 207,058 $ 606,321
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Fixed charges:
Interest expense:
Interest on indebtedness $ 39,585 $ 31,156 $ 22,921
Capitalized 903 1,125 1,609
Amortization of debt related costs (1) 31,155 35,912 37,801
Interest portion of rental expense 3,367 3,273 3,052
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Fixed charges before adjustments 75,010 71,466 65,383
Less capitalized interest (903) (1,125) (1,609)
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Fixed charges as adjusted $ 74,107 $ 70,341 $ 63,774
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Ratio (earnings divided by fixed charges
before adjustments) 3.32 2.90 9.27
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</Table>
(1) Includes deferred financing, discount and premium amortization.