The energy prices having plunged, the US oil giant ConocoPhillips plans to write down a projected $34 billion of earlier acquisitions - including a reduction in its stake in OAO Lukoil - and slash 4 percent of its employees globally.

In a statement, the company said that while the value of its equity investment in Russia's Lukoil will be reduced by $7.3 billion, other asset writedowns recorded would total $1.3 billion.

According to Bloomberg data, the biggest writedown would be a $25.4 billion impairment charge in the oil and gas business - which would amount to 87 percent of the company goodwill as on its September 30 balance sheet. The actual fourth-quarter results of the company will be reported on January 28.

Jim Mulva, the chairman and CEO of the company - the third-largest oil compant in the US - said that the announced actions are "a result of the current business environment's impact on our operating and capital plans."

Mulva also said that the company is attempting to position itself in the existing business environment as well as sustain its financial strength. For this, the company intends reducing its cost structure, addressing its balance sheet, and managing it through prudent capital discipline.

As regards the 2009 capital expenditure budget, the figures would be $12.5 billion, which would be an 18-percent reduction from the $15.3 billion approved for 2008.