U.S. oil giant ConocoPhillips (COP) plans to halve its stake in OAO Lukoil Holdings (LUKOY, LKOH.RS) to 10% and launch a $5 billion stock-buyback effort as the company detailed a number of steps as part of its effort to boost its lagging stock price.

Shares are currently at levels seen five years ago, and the third-biggest oil company in the U.S. by market value after Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX) has gone through a period of struggles amid the recession as the oil bubble burst and prices dropped.

Conoco disclosed Wednesday ahead of its annual analyst meeting a list of potential divestitures for this year, including its remaining U.S. marketing assets. The company also announced a 10% dividend hike. The planned $5 billion stock repurchase compares with Conoco's market value of $75 billion.

Meanwhile, Conoco confirmed that it will sell half its 20% stake in Lukoil-- Russia 's second-biggest oil producer.

The company said in October it would sell about $10 billion of assets over the next two years in an effort to shore up its finances. And it warned in January that 2010 production will drop as it keeps a lid on oil-patch investment in order to steady its finances.

The company said Wednesday it expects to deliver per-share production growth of about 3% in 2010 and 2011 and 3% to 5% growth in subsequent years.

Shares of ConocoPhillips were up 0.9% premarket to $53. The stock has risen by one-third in the past 12 months, trailing the broader market.
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