There's rarely a dull moment in the oil patch these days.

Anadarko Petroleum  (APC)  had decided to begin talks to sell itself to Occidental Petroleum  (OXY - Get Report) , according to a report from Reuters.

Anadarko's board decided Sunday that Occidental's $38 billion cash-and-stock bid could lead to a deal that would be superior to the one it reached earlier in April with Chevron (CVX - Get Report) , sources told Reuters. Anadarko had struck a deal sell itself to Chevron for $33 billion.

Occidental already had been interested in acquiring Anadarko before the Chevron deal was announced.

Other reports said that Anadarko already was preparing to endorse the deal or is merely "leaning" towards to the Occidental bid vs. the Chevron bid. 

If Chevron does lose out in the bidding war it could walk away with a cool $1 billion so-called breakup fee from Anadarko, according to Reuters.

Anadarko is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells APC? Learn more now.

Constable owns none of the securities listed in this story.