10-Q

FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2014

Or

[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 033-79220

California Petroleum Transport Corporation

(Exact name of registrant as specified in its charter)

Delaware	04-3232976
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

114 West 47th Street, Suite 2310, New York, New York 10036

(Address of principal executive offices) (Zip Code)

(212) 302-5151

(Registrant's telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

[X] Yes  [_] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

[X ] Yes  [_] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non- accelerated filer. See the definitions of "large accelerated filer", "accelerated filer", "non-accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	[_]	Accelerated filer	[_]
Non-accelerated filer	[X]	Smaller Reporting Company	[_]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

[_] Yes   [X] No

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

[_] Yes   [_] No

Number of shares outstanding of each class of Registrant's Common Stock as of August 12, 2014

1,000 shares Common Stock, $1.00 par value per share

California Petroleum Transport Corporation

Quarterly Report on Form 10-Q

		Page
Part I	Financial Information
Item 1	Financial Statements	2
Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	9
Item 3	Quantitative and Qualitative Disclosures about Market Risk	10
Item 4	Controls and Procedures	10
Part II	Other Information
Item 1	Legal Proceedings	10
Item 1A	Risk Factors	10
Item 2	Unregistered Sales of Equity Securities and Use of Proceeds	10
Item 3	Defaults Upon Senior Securities	10
Item 4	Mine Safety Disclosures	10
Item 5	Other Information	10
Item 6	Exhibits	11
Signatures		13

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Matters discussed in this report may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts.

California Petroleum Transport Corporation, or the Company, desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. This report and any other written or oral statements made by us or on our behalf may include forward-looking statements, which reflect our current views with respect to future events and financial performance. When used in this report, the words "believe," "anticipate," "intend," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect" and similar expressions identify forward-looking statements.

The forward-looking statements in this report are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors and matters discussed elsewhere herein and in the documents incorporated by reference herein, important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, general market conditions, including fluctuations in charter hire rates and vessel values, changes in demand in the tanker market, including changes in demand resulting from changes in OPEC's petroleum production levels and world wide oil consumption and storage, changes in the Company's operating expenses, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, and other important factors described from time to time in the reports filed by the Company with the Securities and Exchange Commission, or the Commission.

We caution readers of this report not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward looking statements are not guarantees of our future performance, and actual results and future developments may vary materially from those projected in the forward looking statements. Please see our Risk Factors in Item 3 of our annual report on Form 10-K for the year ended December 31, 2013 for a more complete discussion of these and other risks and uncertainties.

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PART I - FINANCIAL INFORMATION

ITEM 1 – FINANCIAL STATEMENTS

California Petroleum Transport Corporation

Unaudited Balance Sheets as at June 30, 2014 and December 31, 2013

(in thousands of US$)

	June 30, 2014	December 31, 2013
ASSETS
Current assets
Cash and cash equivalents	1	1
Current portion of Term Loans	9,468	9,526
Interest receivable	203	406
Other current assets	10	15
Total current assets	9,682	9,948
Term Loans, less current portion	—	9,426
Deferred charges	57	99
Total assets	9,739	19,473
LIABILITIES AND EQUITY
Current liabilities
Accrued interest	203	406
Current portion of Term Notes	9,525	9,526
Other current liabilities	10	15
Total current liabilities	9,738	9,947
Term Notes, less current portion	—	9,525
Total liabilities	9,738	19,472
Equity
Share capital	1	1
Total liabilities and equity	9,739	19,473

See notes to the unaudited financial statements.

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California Petroleum Transport Corporation

Unaudited Statements of Operations and Retained Earnings for the three month and six month periods ended June 30, 2014 and 2013

(in thousands of US$)

	Three month period ended June 30,				Six month period ended June 30,
	2014		2013		2014		2013
Revenue
Interest income	224		426		650		1,056
Expenses reimbursed	3		3		8		9
Net operating revenues	227		429		658		1,065
Expenses
Administrative expenses	(3	)	(3	)	(8	)	(9	)
Amortization of debt issue costs	(21	)	(21	)	(42	)	(42	)
Interest expense	(203	)	(405	)	(608	)	(1,014	)
Total operating expenses	(227	)	(429	)	(658	)	(1,065	)
Net income	—		—		—		—
Retained earnings, beginning of period	—		—		—		—
Retained earnings, end of period	—		—		—		—

See notes to the unaudited financial statements.

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California Petroleum Transport Corporation

Unaudited Statements of Cash Flows for the six month periods ended June 30, 2014 and 2013

(in thousands of US$)

	Six month period ended June 30,
	2014		2013
Net income	—		—
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred debt issue costs	42		42
Amortization of issue discount on loan receivable	(42	)	(42	)
Changes in operating assets and liabilities:
Interest receivable	203		203
Other current assets	5		16
Accrued interest	(203	)	(203	)
Other current liabilities	(5	)	(16	)
Net cash provided by operating activities	—		—
Cash flows from investing activities
Collections on Term Loans	9,526		9,526
Net cash provided by investing activities	9,526		9,526
Cash flows from financing activities
Repayment of Term Notes	(9,526	)	(9,526	)
Net cash used in financing activities	(9,526	)	(9,526	)
Net change in cash and cash equivalents	—		—
Cash and cash equivalents at beginning of period	1		1
Cash and cash equivalents at end of period	1		1
Supplemental disclosure of cash flow information
Interest paid	811		1,217

See notes to the unaudited financial statements.

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California Petroleum Transport Corporation

Notes to the unaudited financial statements

1.           DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

California Petroleum Transport Corporation (the "Company"), which is incorporated in Delaware, is a special purpose corporation that was organized solely for the purpose of issuing, as agent on behalf of CalPetro Tankers (Bahamas I) Limited, CalPetro Tankers (Bahamas II) Limited, CalPetro Tankers (Bahamas III) Limited and CalPetro Tankers (IOM) Limited (each an "Owner" and, together the "Owners"), $167,500,000 Serial First Preferred Mortgage Notes, or the Serial Notes, and $117,900,0008.52% First Preferred Mortgage Notes due in 2015, which we refer to as the Term Notes and together with the Serial Notes as the Notes. The Serial Notes were fully repaid April 1, 2006. The proceeds from the sale of the Notes were applied by way of long-term loans, being Serial Loans in respect of the Serial First Preferred Mortgage Notes and Term Loans in respect of the First Preferred Mortgage Notes due in 2015, to the Owners to fund the acquisition of four vessels (the "Vessels") from Chevron Transport Corporation ("Chevron").

Currently, the Owners charter three of the Vessels to Chevron under bareboat charters that are expected to provide sufficient payments to cover the Owners' obligations to the Company. CalPetro Tankers (Bahamas I) Limited, CalPetro Tankers (Bahamas II) Limited and CalPetro Tankers (IOM) Limited received no notice from Chevron to terminate their bareboat charters by the required dates. Consequently, the charters are currently scheduled to continue until April 1, 2015. In July 2014, the Owners received a request from Chevron to terminate each of the three bareboat charters early. Such early termination would also result in the full redemption of all the outstanding Term Notes and Term Loans. The Owners are currently in discussion with Chevron on this matter.

The fourth Vessel (the "Front Voyager") was chartered under a bareboat charter to Front Voyager Inc. (the "Charterer"), a wholly owned subsidiary of Frontline Ltd. (the "Front Voyager Charter"). Pursuant to the Front Voyager Charter, the Charterer agreed to charter the Front Voyager as of April 1, 2006 for an initial two-year period (the "Initial Period") with a further seven annual optional periods. The charterhire payable for the Initial Period was $5.05 million. This was prepaid in full on March 31, 2006. On March 25, 2009, the Charterer exercised its option to extend the charter for the second one-year optional period beginning April 1, 2009 at a cost of $1.8 million. On January 5, 2010, the Charterer gave notice that it would terminate the charter and paid a termination fee of $4.9 million on April 1, 2010 in accordance with the bareboat charter. A Memorandum of Agreement, dated March 15, 2010, was signed regarding the sale of the Front Voyager for $8.3 million and delivery to the buyer occurred on April 8, 2010. After the sale of Front Voyager, the Owner, CalPetro Tankers (Bahamas III) Limited, will continue in existence but will not actively engage in any business other than in connection with ongoing corporate affairs.

The Company's only source of funds for the repayment of the principal and interest on the Term Notes are the repayments from the Owners. The Owners only source of funds for the repayment of the principal and interest on the Term Loans due to the Company are from charterhire payments from Chevron as well as investment income and the proceeds, if any, from the sale of any of the Vessels. Accordingly, the Company's ability to service its obligations on the Term Notes is wholly dependent upon the financial condition, results of operations and cash flows from the Owners.

The interim financial statements of the Company have been prepared in accordance with generally accepted accounting principles ("GAAP") for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. These financial statements are unaudited and should be read in conjunction with the audited financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2013. The Company follows the same accounting policies in the preparation of interim reports. In the opinion of management, the financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of the financial condition, results of operations and cash flows of the Company for the interim periods presented and are not necessarily indicative of a full year's results.

2.           PRINCIPAL ACCOUNTING POLICIES

(a)           Revenue and expense recognition

Interest receivable on the Term Loans is accrued on a daily basis.  Interest payable on the Term Notes is accrued on a daily basis. The Owners reimburse the Company for general and administrative expenses incurred on their behalf.

(b)           Deferred charges

Deferred charges represent the capitalization of debt issue costs. These costs are amortized over the term of the Term Notes to which they relate on a straight line basis, which is not materially different to the effective interest rate method.

(c)           Reporting and functional currency

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The reporting and functional currency is the United States dollar.

(d)           Use of estimates

The preparation of financial statements in accordance with US GAAP requires the Company to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities on the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

(e)           Recently Issued Accounting Pronouncements

There were no new accounting standards implemented in 2014 that had an impact on our results or new accounting standards to be implemented in the future that we expect to have an impact on our results when adopted.

3.           TERM LOANS

The principal balances of the Term Loans earn interest at a rate of 8.52% per annum and are to be repaid in full on April 1, 2015.

4.           TERM LOANS COLLATERAL

The Term Loans are collateralized by first preferred mortgages on the Vessels to the Company. The earnings and insurance relating to the Vessels subject to the charters with Chevron have been collaterally assigned pursuant to an assignment of earnings and insurance to the Company, which in turn has assigned such assignment of earnings and insurance to The Bank of New York Mellon as the collateral trustee (the "Trustee"). The charters with Chevron and the Chevron Guarantees (where the obligations of Chevron are guaranteed by Chevron Corporation) relating to the Vessels have been collaterally assigned pursuant to the assignment of initial charter and assignment of initial charter guarantee to the Company, which in turn has assigned such assignments to the collateral trustee.  The capital stock of each of the Owners has been pledged to the Company pursuant to stock pledge agreements which have also been collaterally assigned to the Trustee.

On October 3, 2011, pursuant to the Collateral Trust Agreement, excess funds held by the Trustee in the amount of $6.7 million allocable to CalPetro Tankers (Bahamas III) Limited became available for release from the relevant trust account as a result of sufficient funds remaining on deposit at the Trustee for the payment in full of principal and interest on the Term Notes as they become due and were released to CalPetro Tankers (Bahamas III) Limited on the same date. CalPetro Tankers (Bahamas III) Limited paid a dividend of $6.7 million on December 15, 2011.

5.           DEFERRED CHARGES

(in thousands of $)	June 30, 2014		December 31, 2013
Debt arrangement fees	3,400		3,400
Accumulated amortization	(3,343	)	(3,301	)
	57		99

6.           TERM NOTES

(in thousands of $)	June 30, 2014		December 31, 2013
8.52% Term Notes due 2015	9,525		19,051
Less: short-term portion	(9,525	)	(9,526	)
	—		9,525

The outstanding debt as of June 30, 2014 is repayable as follows:

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(in thousands of $)
2015	9,525
	9,525

The Term Notes bear interest at a rate of 8.52% per annum. Interest is payable semi-annually. The Term Notes include certain covenants such as restriction on the payment of dividends and making additional loans or advances to affiliates. At June 30, 2014 and December 31, 2013, the Company was in compliance with these covenants.

As of June 30, 2014, the effective interest rate for the Term Notes of the Company was 8.52%.

7.           SHARE CAPITAL

(in thousands of $)	June 30, 2014	December 31, 2013
Authorized, issued and fully paid share capital:
1,000 shares of $1.00 each	1	1

8.           FINANCIAL INSTRUMENTS

Fair values

The carrying value and estimated fair value of the Company's financial instruments at June 30, 2014 and December 31, 2013 are as follows: 

(in thousands of $)	June 30, 2014 Fair Value	June 30, 2014 Carrying Value	December 31, 2013 Fair Value	December 31, 2013 Carrying Value
Cash and cash equivalents	1	1	1	1
Term Loans	9,477	9,468	18,781	18,952
Term Notes	9,534	9,525	18,880	19,051

The estimated fair value of financial assets and liabilities are as follows:

(in thousands of $)	June 30, 2014 Fair value	Level 1	Level 2	Level 3
Financial assets:
Cash and cash equivalents	1	1	—	—
Term Loans	9,477	—	9,477	—
Financial liabilities:
Term Notes	9,534	—	9,534	—

(in thousands of $)	December 31, 2013 Fair value	Level 1	Level 2		Level 3
Financial assets:
Cash and cash equivalents	1	1	—	—	—
Term Loans	18,781	—	18,781	—	—
Financial liabilities:
Term Notes	18,880	—	18,880	—	—

The following methods and assumptions were used to estimate the fair value of each class of financial instrument;

Cash and cash equivalents - the carrying value is a reasonable estimate of fair value.

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Term Loans – the estimated fair value of the Term Loans is based on the market price achieved in the last significant trading of the Term Notes.

Term Notes – the estimated fair value of the Term Notes is based on the market price achieved in the last significant trading of the notes (level two per ASC Topic 820).

Concentrations of risk

The Company's only source of funds for the repayment of the principal and interest on the Term Notes are the repayments from the Owners. The Owners only source of funds for the repayment of the principal and interest on the Term Loans due to the Company are from charterhire payments from Chevron as well as investment income and the proceeds, if any, from the sale of any of the Vessels. Accordingly, the Company's ability to service its obligations on the Term Notes is wholly dependent upon the financial condition, results of operations and cash flows from the Owners.

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9. SUBSEQUENT EVENT

In July 2014, the Owners received a request from Chevron to terminate each of the three bareboat charters early and not April 1, 2015 as scheduled. Such early termination would also result in the full redemption of all the outstanding Term Notes and Term Loans. The Owners are currently in discussion with Chevron on this matter.

ITEM 2 – MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Results of Operations

Three and six months ended June 30, 2014 compared with the three and six months ended June 30, 2013

Amounts included in the following discussion are derived from our unaudited interim financial statements for the three and six month period ended June 30, 2014 and 2013.

Interest income

	Three months ended June 30,		Six months ended June 30,
(in thousands of $)	2014	2013	2014	2013
Interest income	224	426	650	1,056

Interest income decreased in the three and six months ended June 30, 2014 compared to the same periods in 2013 primarily due to a decrease in the principal balance of Term Loans receivable.

Expenses reimbursed

	Three months ended June 30,		Six months ended June 30,
(in thousands of $)	2014	2013	2014	2013
Expenses reimbursed	3	3	8	9

Administrative expenses, which are incurred by us are billed to the Owners. Please see the discussion on administrative expenses below.

Interest expense

	Three months ended June 30,				Six months ended June 30,
(in thousands of $)	2014		2013		2014		2013
Interest expense	(203	)	(405	)	(608	)	(1,014	)

The decrease in interest expense for the three months and six months ended June 30, 2014 compared to the same periods in 2013 is consistent with expectations resulting from the interest being charged on a lower principal balance.

Administrative expenses

	Three months ended June 30,				Six months ended June 30,
(in thousands of $)	2014		2013		2014		2013
Administrative expenses	(3	)	(3	)	(8	)	(9	)

Administrative expenses which comprise audit fees and other costs are billed to the owners.

Liquidity and Capital Resources

We are a passive entity, and our activities are limited to collecting cash from the Owners and making repayments on the Term Notes. We have no source of liquidity and no capital resources other than the cash receipts attributable to the Term Loans.

The Term Notes bear interest at a rate of 8.52% per annum. Interest is payable semi-annually. The Term Notes include certain covenants such as restriction on the payment of dividends and making additional loans or advances to affiliates. At June 30, 2014 and December 31, 2013, the Company was in compliance with these covenants.

9

Off-balance Sheet Arrangements

We have no off-balance sheet arrangements that have, or are reasonably likely to have, a material current effect or that are reasonably likely to have a material future effect on its financial condition, revenues or expenses, liquidity, capital expenditures or capital reserves.

Critical Accounting Policies

There have been no material changes to our critical accounting policies and estimates from the information provided in "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations" included in our annual report on Form 10-K for the year ended December 31, 2013.

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

None of the instruments issued by us are for trading purposes. We are exposed to business risk inherent in the international tanker market as outlined in "Item 1A. Risk Factors" in our annual report on Form 10-K for the year ended December 31, 2013.

The Company's only source of funds for the repayment of the principal and interest on the Term Notes are the repayments from the Owners. The Owners only source of funds for the repayment of the principal and interest on the Term Loans due to the Company are from charterhire payments from Chevron as well as investment income and the proceeds, if any, from the sale of any of the Vessels. Accordingly, the Company's ability to service its obligations on the Term Notes is wholly dependent upon the financial condition, results of operations and cash flows from the Owners.

Quantitative information about market risk instruments as of June 30, 2014 is as follows:

Term Notes

The principal balances of the Term Notes accrue interest at a rate of 8.52% per annum. The outstanding amount as of June 30, 2014 was $9.5 million and this amount is due to be repaid in full on April 1, 2015.

The principal balances of the Term Loans earn interest at a rate of 8.52% per annum and are to be repaid in full on April 1, 2015 on the same basis as the Term Notes.

ITEM 4 – CONTROLS AND PROCEDURES

(a)  Disclosure Controls and Procedures

Our management, including our principal executive and financial officers, with the participation of our manager, Frontline Ltd., assessed the effectiveness of the design and operation of the Company's disclosure controls and procedures pursuant to Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended, as of June 30, 2014.  Based upon that evaluation, our management, including our principal executive and financial officers, with the participation of our manager, Frontline Ltd., concluded that the Company's disclosure controls and procedures were effective as of June 30, 2014.

(b)  Changes in Internal Control over Financial Reporting

There were no changes in our internal controls over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1.    Legal Proceedings

None.

Item 1A.    Risk Factors

Management of the Company does not believe there have been any material changes in the risk factors that were disclosed in the Company's annual report on Form 10-K for the year ended December 31, 2013, which was filed with the Commission on March 25, 2014.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3.    Defaults Upon Senior Securities

None.

Item 4.    Mine Safety Disclosures

None.

Item 5.    Other Information

None.

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Item 6 – Exhibits

3.1*	Certificate of Incorporation of California Petroleum Transport Corporation (filed as Exhibit 3.1 to Registrant's Registration Statement on Form S-1, Commission File Number 33-79220, and incorporated herein by reference).
3.2*	Bylaws of California Petroleum Transport Corporation (filed as Exhibit 3.2 to Registrant's Registration Statement on Form S-1, Commission File Number 33-79220, and incorporated herein by reference).
4.4*	Bareboat Charter between CalPetro Tankers (Bahamas III) Limited and Front Voyager Inc. dated March 31, 2006 (filed July 8, 2008 as Exhibit 4.4 on Form 20-F/A, Commission File No. 33-79220).
4.5*	Assignment of Charter between CalPetro Tankers (Bahamas III) Limited and Front Voyager Inc. dated March 31, 2006 (filed July 8, 2008 as Exhibit 4.5 on Form 20-F/A, Commission File No. 33-79220).
4.6*	Amendment No. 2 to Management and Remarketing Agreement between CalPetro Tankers (Bahamas III) Limited and Frontline Ltd. dated as of April 8, 2010 (filed April 29, 2010 as Exhibit 4.6 on Form 20-F, Commission File No. 33-79220).
4.7*	Amendment No. 2 to the Collateral Trust Agreement among CalPetro Tankers (Bahamas I) Limited, CalPetro Tankers (Bahamas II) Limited, CalPetro Tankers (Bahamas III) Limited, CalPetro Tankers (IOM) Limited, The Bank of New York Mellon Trust Company, N.A., as indenture trustee, The Bank of New York Trust Company, N.A., as collateral trustee and California Petroleum Transport Corporation, dated as of April 1, 2010 (filed April 29, 2010 as Exhibit 4.7 on Form 20-F, Commission File No. 33-79220).

4.8*	Termination of Assignment of Charter between CalPetro Tankers (Bahamas III) Limited and California Petroleum Transport Corporation (dated as of April 8, 2010 as Exhibit 4.8 filed April 29, 2010 on Form 20-F, Commission File No. 33-79220).
4.9*	Termination of Statutory Mortgage between CalPetro Tankers (Bahamas III) Limited and The Bank of New York Mellon Trust Company, N.A., dated as of April 8, 2010 (filed April 29, 2010 as Exhibit 4.9 on Form 20-F, Commission File No. 33-79220).
4.10*	Termination of Deed of Covenants between CalPetro Tankers (Bahamas III) Limited and California Petroleum Transport Corporation dated as of April 8, 2010 (filed April 29, 2010 as Exhibit 4.10 on Form 20-F, Commission File No. 33-79220).
4.11*	Termination of Term Loan Agreement between CalPetro Tankers (Bahamas III) Limited and California Petroleum Transport Corporation dated as of April 8, 2010 (filed April 29, 2010 as Exhibit 4.11 on Form 20-F, Commission File No. 33-79220).
4.12*	Termination of Debenture between CalPetro Tankers (Bahamas III) Limited and California Petroleum Transport Corporation dated as of April 8, 2010 (filed April 29, 2010 as Exhibit 4.12 on Form 20-F, Commission File No. 33-79220).
4.13*	Termination of Assignment of Earnings and Insurances between CalPetro Tankers (Bahamas III) Limited and California Petroleum Transport Corporation dated as of April 8, 2010 (filed April 29, 2010 as Exhibit 4.13 on Form 20-F, Commission File No. 33-79220).
4.14*	Termination of Assignment of Purchase Agreement between CalPetro Tankers (Bahamas III) Limited and California Petroleum Transport Corporation dated as of April 8, 2010 (filed April 29, 2010 as Exhibit 4.14 on Form 20-F, Commission File No. 33-79220).
31.1	Certification of Principal Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended

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31.2	Certification of Principal Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended
32.1	Certifications of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certifications of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

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* Incorporated by reference to the filing indicated.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		California Petroleum Transport Corporation         (Registrant)
Date:  August 12, 2014	By:	/s/ Damian A. Perez
		Damian A. Perez
		Director, President and Treasurer (Principal Executive Officer and Principal Financial Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER

I, Damian A. Perez, certify that:

1. I have reviewed this Form 10-Q of California Petroleum Transport Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 Date: August 12, 2014

/s/ Damian A. Perez

Damian A. Perez

Principal Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER

I, Damian A. Perez, certify that:

1. I have reviewed this Form 10-Q of California Petroleum Transport Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 Date: August 12, 2014

/s/ Damian A. Perez

Damian A. Perez

Principal Financial Officer

EX-32.1

Exhibit 32.1

PRINCIPAL EXECUTIVE OFFICER CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the Quarterly Report of California Petroleum Transport Corporation (the "Company") on Form 10-Q for the quarter ended June 30, 2014 as filed with the Securities and Exchange Commission (the "SEC") on or about the date hereof (the "Report"), I, Damian A. Perez, President and Treasurer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(a) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(b) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

Date: August 12, 2014

/s/ Damian A. Perez

Damian A. Perez

Principal Executive Officer

EX-32.2

Exhibit 32.2

PRINCIPAL FINANCIAL OFFICER CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350

In connection with the Quarterly Report of California Petroleum Transport Corporation (the "Company") on Form 10-Q for the quarter ended June 30, 2014 as filed with the Securities and Exchange Commission (the "SEC") on or about the date hereof (the "Report"), I, Damian A. Perez, President and Treasurer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(a) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(b) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

A signed original of this written statement has been provided to the Company and will be retained by the Company and furnished to the SEC or its staff upon request.

Date: August 12, 2014

/s/ Damian A. Perez

Damian A. Perez

Principal Financial Officer

XML

FINANCIAL INSTRUMENTS (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Fair Value, Measurements, Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	$ 1	$ 1
Term Loans	9,477	18,781
Term Notes	9,534	18,880
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	0	0
Term Loans	0	0
Term Notes	0	0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	0	0
Term Loans	9,477	18,781
Term Notes	9,534	18,880
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	1	1
Term Loans	0	0
Term Notes	0	0
Carrying (Reported) Amount, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	1	1
Term Loans	9,468	18,952
Term Notes	9,525	19,051
Estimate of Fair Value, Fair Value Disclosure [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	1	1
Term Loans	9,477	18,781
Term Notes	$ 9,534	$ 18,880

XML

DEFERRED CHARGES

6 Months Ended

Jun. 30, 2014

Deferred Costs [Abstract]

DEFERRED CHARGES

5.           DEFERRED CHARGES

(in thousands of $)	June 30, 2014		December 31, 2013
Debt arrangement fees	3,400		3,400
Accumulated amortization	(3,343	)	(3,301	)
	57		99

XML

TERM LOANS COLLATERAL

6 Months Ended

Jun. 30, 2014

TERM LOANS COLLATERAL [Abstract]

TERM LOANS COLLATERAL

4.           TERM LOANS COLLATERAL

The Term Loans are collateralized by first preferred mortgages on the Vessels to the Company. The earnings and insurance relating to the Vessels subject to the charters with Chevron have been collaterally assigned pursuant to an assignment of earnings and insurance to the Company, which in turn has assigned such assignment of earnings and insurance to The Bank of New York Mellon as the collateral trustee (the "Trustee"). The charters with Chevron and the Chevron Guarantees (where the obligations of Chevron are guaranteed by Chevron Corporation) relating to the Vessels have been collaterally assigned pursuant to the assignment of initial charter and assignment of initial charter guarantee to the Company, which in turn has assigned such assignments to the collateral trustee.  The capital stock of each of the Owners has been pledged to the Company pursuant to stock pledge agreements which have also been collaterally assigned to the Trustee.

On October 3, 2011, pursuant to the Collateral Trust Agreement, excess funds held by the Trustee in the amount of $6.7 million allocable to CalPetro Tankers (Bahamas III) Limited became available for release from the relevant trust account as a result of sufficient funds remaining on deposit at the Trustee for the payment in full of principal and interest on the Term Notes as they become due and were released to CalPetro Tankers (Bahamas III) Limited on the same date. CalPetro Tankers (Bahamas III) Limited paid a dividend of $6.7 million on December 15, 2011.

XML

Unaudited Balance Sheets (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Current assets:
Cash and cash equivalents	$ 1	$ 1
Current portion of Term Loans	9,468	9,526
Interest receivable	203	406
Other current assets	10	15
Total current assets	9,682	9,948
Term Loans, less current portion	0	9,426
Deferred charges	57	99
Total assets	9,739	19,473
Current liabilities:
Accrued interest	203	406
Current portion of Term Notes	9,525	9,526
Other current liabilities	10	15
Total current liabilities	9,738	9,947
Term Notes, less current portion	0	9,525
Total liabilities	9,738	19,472
Equity
Share capital	1	1
Total liabilities and equity	$ 9,739	$ 19,473

XML

PRINCIPAL ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

2.           PRINCIPAL ACCOUNTING POLICIES

(a)           Revenue and expense recognition

Interest receivable on the Term Loans is accrued on a daily basis.  Interest payable on the Term Notes is accrued on a daily basis. The Owners reimburse the Company for general and administrative expenses incurred on their behalf.

(b)           Deferred charges

Deferred charges represent the capitalization of debt issue costs. These costs are amortized over the term of the Term Notes to which they relate on a straight line basis, which is not materially different to the effective interest rate method.

(c)           Reporting and functional currency

The reporting and functional currency is the United States dollar.

(d)           Use of estimates

The preparation of financial statements in accordance with US GAAP requires the Company to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities on the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

(e)           Recently Issued Accounting Pronouncements

There were no new accounting standards implemented in 2014 that had an impact on our results or new accounting standards to be implemented in the future that we expect to have an impact on our results when adopted.

XML

DEFERRED CHARGES (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Deferred Costs [Abstract]
Debt arrangement fees	$ 3,400	$ 3,400
Accumulated amortization	(3,343)	(3,301)
Deferred charges	$ 57	$ 99

XML

SHARE CAPITAL (Details) (USD $) In Thousands, except Share data, unless otherwise specified	Jun. 30, 2014	Dec. 31, 2013
Stockholders' Equity Note [Abstract]
Authorized, issued and fully paid share capital: 1,000 shares of $1.00 each	$ 1	$ 1
Ordinary shares authorized (in shares)	1,000	1,000
Ordinary shares issued (in shares)	1,000	1,000
Ordinary shares fully paid (in shares)	1,000	1,000
Ordinary shares authorized - par value (in dollars per share)	$ 1.00	$ 1.00

XML

TERM LOANS

6 Months Ended

Jun. 30, 2014

Receivables [Abstract]

TERM LOANS

3.           TERM LOANS

The principal balances of the Term Loans earn interest at a rate of 8.52% per annum and are to be repaid in full on April 1, 2015.

XML

Unaudited Statements of Operations and Retained Earnings (USD $) In Thousands, unless otherwise specified	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Revenue
Interest income	$ 224	$ 426	$ 650	$ 1,056
Expenses reimbursed	3	3	8	9
Net operating revenues	227	429	658	1,065
Expenses
Administrative expenses	(3)	(3)	(8)	(9)
Amortization of debt issue costs	(21)	(21)	(42)	(42)
Interest expense	(203)	(405)	(608)	(1,014)
Total operating expenses	(227)	(429)	(658)	(1,065)
Net income	0	0	0	0
Retained earnings, beginning of period	0	0	0	0
Retained earnings, end of period	$ 0	$ 0	$ 0	$ 0

XML

SHARE CAPITAL (Tables)

6 Months Ended

Jun. 30, 2014

Stockholders' Equity Note [Abstract]

Share Capital

(in thousands of $)	June 30, 2014	December 31, 2013
Authorized, issued and fully paid share capital:
1,000 shares of $1.00 each	1	1

XML

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 12, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	CALIFORNIA PETROLEUM TRANSPORT CORPORATION
Entity Central Index Key	0000923649
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Document Fiscal Year Focus	2014
Entity Common Stock, Shares Outstanding		1,000
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2014

XML

FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Carrying Values and Estimated Fair Values of Financial Instruments

The carrying value and estimated fair value of the Company's financial instruments at June 30, 2014 and December 31, 2013 are as follows: 

(in thousands of $)	June 30, 2014 Fair Value	June 30, 2014 Carrying Value	December 31, 2013 Fair Value	December 31, 2013 Carrying Value
Cash and cash equivalents	1	1	1	1
Term Loans	9,477	9,468	18,781	18,952
Term Notes	9,534	9,525	18,880	19,051

Estimated Fair Value of Financial Assets and Liabilities

The estimated fair value of financial assets and liabilities are as follows:

(in thousands of $)	June 30, 2014 Fair value	Level 1	Level 2	Level 3
Financial assets:
Cash and cash equivalents	1	1	—	—
Term Loans	9,477	—	9,477	—
Financial liabilities:
Term Notes	9,534	—	9,534	—

(in thousands of $)	December 31, 2013 Fair value	Level 1	Level 2		Level 3
Financial assets:
Cash and cash equivalents	1	1	—	—	—
Term Loans	18,781	—	18,781	—	—
Financial liabilities:
Term Notes	18,880	—	18,880	—	—

XML

Unaudited Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Statement of Cash Flows [Abstract]
Net income	$ 0	$ 0
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred debt issue costs	42	42
Amortization of issue discount on loan receivable	(42)	(42)
Changes in operating assets and liabilities:
Interest receivable	203	203
Other current assets	5	16
Accrued interest	(203)	(203)
Other current liabilities	(5)	(16)
Net cash provided by operating activities	0	0
Cash flows from investing activities
Collections on Term Loans	9,526	9,526
Net cash provided by investing activities	9,526	9,526
Cash flows from financing activities
Repayment of Term Notes	(9,526)	(9,526)
Net cash used in financing activities	(9,526)	(9,526)
Net change in cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	1	1
Cash and cash equivalents at end of period	1	1
Supplemental disclosure of cash flow information
Interest paid	$ 811	$ 1,217

XML

FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2014

Investments, Debt and Equity Securities [Abstract]

FINANCIAL INSTRUMENTS

8.           FINANCIAL INSTRUMENTS

Fair values

The carrying value and estimated fair value of the Company's financial instruments at June 30, 2014 and December 31, 2013 are as follows: 

(in thousands of $)	June 30, 2014 Fair Value	June 30, 2014 Carrying Value	December 31, 2013 Fair Value	December 31, 2013 Carrying Value
Cash and cash equivalents	1	1	1	1
Term Loans	9,477	9,468	18,781	18,952
Term Notes	9,534	9,525	18,880	19,051

The estimated fair value of financial assets and liabilities are as follows:

(in thousands of $)	June 30, 2014 Fair value	Level 1	Level 2	Level 3
Financial assets:
Cash and cash equivalents	1	1	—	—
Term Loans	9,477	—	9,477	—
Financial liabilities:
Term Notes	9,534	—	9,534	—

(in thousands of $)	December 31, 2013 Fair value	Level 1	Level 2		Level 3
Financial assets:
Cash and cash equivalents	1	1	—	—	—
Term Loans	18,781	—	18,781	—	—
Financial liabilities:
Term Notes	18,880	—	18,880	—	—

The following methods and assumptions were used to estimate the fair value of each class of financial instrument;

Cash and cash equivalents - the carrying value is a reasonable estimate of fair value.

Term Loans – the estimated fair value of the Term Loans is based on the market price achieved in the last significant trading of the Term Notes.

Term Notes – the estimated fair value of the Term Notes is based on the market price achieved in the last significant trading of the notes (level two per ASC Topic 820).

Concentrations of risk

The Company's only source of funds for the repayment of the principal and interest on the Term Notes are the repayments from the Owners. The Owners only source of funds for the repayment of the principal and interest on the Term Loans due to the Company are from charterhire payments from Chevron as well as investment income and the proceeds, if any, from the sale of any of the Vessels. Accordingly, the Company's ability to service its obligations on the Term Notes is wholly dependent upon the financial condition, results of operations and cash flows from the Owners.

XML

SHARE CAPITAL

6 Months Ended

Jun. 30, 2014

Stockholders' Equity Note [Abstract]

SHARE CAPITAL

7.           SHARE CAPITAL

(in thousands of $)	June 30, 2014	December 31, 2013
Authorized, issued and fully paid share capital:
1,000 shares of $1.00 each	1	1

XML

TERM NOTES (Details) (USD $) In Thousands, unless otherwise specified	Jun. 30, 2014 Rate	Dec. 31, 2013
Total debt	$ 9,525
Less: short-term portion	(9,525)	(9,526)
Notes Payable, Noncurrent	0	9,525
Interest rate (in hundredths)	8.52%
Outstanding debt repayable [Abstract]
2015	9,525
Total debt	9,525
Effective interest rate (in hundredths)	8.52%
8.52% Term Notes due 2015 [Member]
Total debt	9,525	19,051
Less: short-term portion	(9,525)	(9,526)
Notes Payable, Noncurrent	0	9,525
Outstanding debt repayable [Abstract]
Total debt	$ 9,525	$ 19,051

XML

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Details) (USD $)	0 Months Ended		6 Months Ended
	Mar. 26, 2009	Apr. 02, 2006	Jun. 30, 2014 vessel Rate	Apr. 08, 2010	Apr. 01, 2010	Mar. 25, 2009	Apr. 01, 2006	Apr. 01, 1995 Term Notes [Member]	Apr. 01, 1995 Serial Notes [Member]
Number of vessels			4
Interest rate (in hundredths)			8.52%
Mortgage notes								$ 117,900,000	$ 167,500,000
Number of vessels under bareboat charter			3
Initial period for charter		2 years
Number of annual optional periods for charter							7
Charterhire payable for initial period							5,050,000
Term of optional extension period of charter	1 year
Charter extension cost						1,800,000
Charter termination fee					4,900,000
Vessel sold				$ 8,300,000

XML

DEFERRED CHARGES (Tables)

6 Months Ended

Jun. 30, 2014

Deferred Costs [Abstract]

Deferred charges

(in thousands of $)	June 30, 2014		December 31, 2013
Debt arrangement fees	3,400		3,400
Accumulated amortization	(3,343	)	(3,301	)
	57		99

XML

Subsequent Event (Notes)

6 Months Ended

Jun. 30, 2014

Subsequent Event [Line Items]

Subsequent Events [Text Block]

9. SUBSEQUENT EVENT

In July 2014, the Owners received a request from Chevron to terminate each of the three bareboat charters early and not April 1, 2015 as scheduled. Such early termination would also result in the full redemption of all the outstanding Term Notes and Term Loans. The Owners are currently in discussion with Chevron on this matter.

XML

PRINCIPAL ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2014

Accounting Policies [Abstract]

Revenue and expense recognition

(a)           Revenue and expense recognition

Interest receivable on the Term Loans is accrued on a daily basis.  Interest payable on the Term Notes is accrued on a daily basis. The Owners reimburse the Company for general and administrative expenses incurred on their behalf.

Deferred charges

(b)           Deferred charges

Deferred charges represent the capitalization of debt issue costs. These costs are amortized over the term of the Term Notes to which they relate on a straight line basis, which is not materially different to the effective interest rate method.

Reporting and functional currency

(c)           Reporting and functional currency

The reporting and functional currency is the United States dollar.

Use of estimates

(d)           Use of estimates

The preparation of financial statements in accordance with US GAAP requires the Company to make estimates and assumptions in determining the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities on the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Recently Issued Accounting Pronouncements

(e)           Recently Issued Accounting Pronouncements

There were no new accounting standards implemented in 2014 that had an impact on our results or new accounting standards to be implemented in the future that we expect to have an impact on our results when adopted.

XML

TERM NOTES (Tables)

6 Months Ended

Jun. 30, 2014

Notes Payable, Noncurrent [Abstract]

Term Notes

(in thousands of $)	June 30, 2014		December 31, 2013
8.52% Term Notes due 2015	9,525		19,051
Less: short-term portion	(9,525	)	(9,526	)
	—		9,525

Outstanding Debt

The outstanding debt as of June 30, 2014 is repayable as follows:

(in thousands of $)
2015	9,525
	9,525

XML

TERM LOANS COLLATERAL (Details) (USD $) In Millions, unless otherwise specified	Dec. 15, 2011	Oct. 03, 2011
TERM LOANS COLLATERAL [Abstract]
Excess fund held by trustee		$ 6.7
Dividend paid by CalPetro Tankers (Bahamas III) Limited	$ 6.7

XML

Subsequent Event (Details)	6 Months Ended
	Jun. 30, 2014 vessel
Subsequent Event [Line Items]
Number of vessels under bareboat charter	3

XML

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

1.           DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION

California Petroleum Transport Corporation (the "Company"), which is incorporated in Delaware, is a special purpose corporation that was organized solely for the purpose of issuing, as agent on behalf of CalPetro Tankers (Bahamas I) Limited, CalPetro Tankers (Bahamas II) Limited, CalPetro Tankers (Bahamas III) Limited and CalPetro Tankers (IOM) Limited (each an "Owner" and, together the "Owners"), $167,500,000 Serial First Preferred Mortgage Notes, or the Serial Notes, and $117,900,0008.52% First Preferred Mortgage Notes due in 2015, which we refer to as the Term Notes and together with the Serial Notes as the Notes. The Serial Notes were fully repaid April 1, 2006. The proceeds from the sale of the Notes were applied by way of long-term loans, being Serial Loans in respect of the Serial First Preferred Mortgage Notes and Term Loans in respect of the First Preferred Mortgage Notes due in 2015, to the Owners to fund the acquisition of four vessels (the "Vessels") from Chevron Transport Corporation ("Chevron").

Currently, the Owners charter three of the Vessels to Chevron under bareboat charters that are expected to provide sufficient payments to cover the Owners' obligations to the Company. CalPetro Tankers (Bahamas I) Limited, CalPetro Tankers (Bahamas II) Limited and CalPetro Tankers (IOM) Limited received no notice from Chevron to terminate their bareboat charters by the required dates. Consequently, the charters are currently scheduled to continue until April 1, 2015. In July 2014, the Owners received a request from Chevron to terminate each of the three bareboat charters early. Such early termination would also result in the full redemption of all the outstanding Term Notes and Term Loans. The Owners are currently in discussion with Chevron on this matter.

The fourth Vessel (the "Front Voyager") was chartered under a bareboat charter to Front Voyager Inc. (the "Charterer"), a wholly owned subsidiary of Frontline Ltd. (the "Front Voyager Charter"). Pursuant to the Front Voyager Charter, the Charterer agreed to charter the Front Voyager as of April 1, 2006 for an initial two-year period (the "Initial Period") with a further seven annual optional periods. The charterhire payable for the Initial Period was $5.05 million. This was prepaid in full on March 31, 2006. On March 25, 2009, the Charterer exercised its option to extend the charter for the second one-year optional period beginning April 1, 2009 at a cost of $1.8 million. On January 5, 2010, the Charterer gave notice that it would terminate the charter and paid a termination fee of $4.9 million on April 1, 2010 in accordance with the bareboat charter. A Memorandum of Agreement, dated March 15, 2010, was signed regarding the sale of the Front Voyager for $8.3 million and delivery to the buyer occurred on April 8, 2010. After the sale of Front Voyager, the Owner, CalPetro Tankers (Bahamas III) Limited, will continue in existence but will not actively engage in any business other than in connection with ongoing corporate affairs.

The Company's only source of funds for the repayment of the principal and interest on the Term Notes are the repayments from the Owners. The Owners only source of funds for the repayment of the principal and interest on the Term Loans due to the Company are from charterhire payments from Chevron as well as investment income and the proceeds, if any, from the sale of any of the Vessels. Accordingly, the Company's ability to service its obligations on the Term Notes is wholly dependent upon the financial condition, results of operations and cash flows from the Owners.

The interim financial statements of the Company have been prepared in accordance with generally accepted accounting principles ("GAAP") for interim financial information and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles for complete financial statements. These financial statements are unaudited and should be read in conjunction with the audited financial statements and notes thereto included in the Company's annual report on Form 10-K for the year ended December 31, 2013. The Company follows the same accounting policies in the preparation of interim reports. In the opinion of management, the financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair statement of the financial condition, results of operations and cash flows of the Company for the interim periods presented and are not necessarily indicative of a full year's results.

XML

TERM NOTES

6 Months Ended

Jun. 30, 2014

Notes Payable, Noncurrent [Abstract]

TERM NOTES

6.           TERM NOTES

(in thousands of $)	June 30, 2014		December 31, 2013
8.52% Term Notes due 2015	9,525		19,051
Less: short-term portion	(9,525	)	(9,526	)
	—		9,525

The outstanding debt as of June 30, 2014 is repayable as follows:

(in thousands of $)
2015	9,525
	9,525

The Term Notes bear interest at a rate of 8.52% per annum. Interest is payable semi-annually. The Term Notes include certain covenants such as restriction on the payment of dividends and making additional loans or advances to affiliates. At June 30, 2014 and December 31, 2013, the Company was in compliance with these covenants.

As of June 30, 2014, the effective interest rate for the Term Notes of the Company was 8.52%.

XML

TERM LOANS (Details)	6 Months Ended
	Jun. 30, 2014 Rate
Receivables [Abstract]
Interest rate on term loans (in hundredths)	8.52%