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Chevron Corp.'s Jack/St. Malo project operates in deepwater Gulf of Mexico. Chevron has been outbid in an effort to acquire Anadarko, potentially energizing Chevron's oil and gas drilling capabilities in the Gulf of Mexico and Texas. Anadarko's board prefers an offer from Occidental.

Anadarko says it plans to end its $33 billion takeover deal with Chevron in favor of a revised bid by Occidental, a company that is less focused on the Gulf of Mexico than Chevron.

Occidental's offer is worth about $57 billion in cash and stock, including debt and book value of noncontrolling interest. Chevron's offer would be worth about $50 billion by the same metric. Last month, Warren Buffett's Berkshire Hathaway said it would put up $10 billion in financing for Occidental.

Anadarko said its board determined Occidental Petroleum Corp.'s offer was superior. Under its deal, Chevron has until Friday to make a revised proposal or a new offer.

Chevron's deal for Occidental would energize its oil and gas drilling capabilities in Texas but also the Gulf of Mexico, an important market for Louisiana, industry experts have said. The combination of assets potentially would make Chevron the largest oil producer in the gulf, assuming it keeps all its rigs and doesn’t shed anything as part of a merger.

While Occidental has a presence in Louisiana, it’s mainly on the petrochemical side, David Dismukes, head of the Center for Energy Studies at LSU, had said. The company’s OxyChem subsidiary manufactures chlorine and caustics at plants in Convent and Geismar.

Occidental has a big presence in the Permian Basin, so making a move for Anadarko is a case of “doubling down” in the region, Dismukes had said. But the kind of synergy Occidental's deal would generate for oil drilling in the Gulf of Mexico is not obvious, Dismukes said. “It’s not real clear how this looks good for us,” he said.

He previously said putting Chevron and Anadarko together would create synergy in the Gulf. “This enhances the competitiveness of the merged company because they bring the best of what both have learned,” he said. “There’s a lot they both bring to the table.”

Anadarko Petroleum Corp. will have to pay a $1 billion fee if it ends the deal with Chevron Corp.