The British oil company and the government of Georgia disagreed over the level of the threat fighting in the South Ossetia posed to the Baku-Tbilisi-Ceyhan pipeline, 154 miles of which runs through Georgia, the Times of London reported.

Georgia said a Russian bombing raid had come close to the structure, which is the world's second longest pipeline and a critical link of oil from Central Asia to the Black Sea.

BP said it was investigating a fire that broke out at one of the pipeline's valves in Turkey. A Kurdish separatist group PKK claimed responsibility for the attack, which took place in the Erzincan province of Turkey, shutting the pipeline down two days before fighting broke out in South Ossetia, the Times reported.