California Petroleum Transport Corporation
Quarterly Report on Form 10-Q
Nine month period ended September 30, 2003
SECURITIES & EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
QUARTERLY REPORT UNDER SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Nine Month Period Ended September 30, 2003 Commission File Number 33-79220
33-56377
CALIFORNIA PETROLEUM TRANSPORT CORPORATION
(exact name of Registrant as specified in its charter)
Delaware 04-3232976
(State of incorporation) (I.R.S. Employer
Identification No.)
Suite 4350, One International Place, Boston, Massachusetts 02110-2624
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code (617) 951-7690
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, and (2) has been subject to such filing requirements
for the past 90 days.
YES X NO
Number of shares outstanding of each class of Registrant's Common Stock as of
November 4, 2003 Common, $1.00 par value............................1,000 shares
California Petroleum Transport Corporation
Quarterly Report on Form 10-Q
Nine month period ended September 30, 2003
Index
Part I Financial Information
Item 1 Financial Statements
Review Report of Independent Accountants
Unaudited Condensed Statements of Operations and Retained Earnings -
Three and Nine Month Periods Ended September 30, 2003 and 2002
Unaudited Condensed Balance Sheets - September 30, 2003 and December
31, 2002
Unaudited Condensed Statements of Cash Flows - Three and Nine Month
Periods Ended September 30, 2003 and 2002
Unaudited Notes to Condensed Financial Statements
Item 2 Management's Discussion and Analysis of Financial Condition and
Results of Operations
Item 3 Quantitative and Qualitative Disclosures about Market Risk
Item 4 Controls and Procedures
Part II Other Information
Item 1 Legal Proceedings
Item 6 Exhibits and Reports on Form 8-K
Signatures
Omitted items are not applicable
California Petroleum Transport Corporation
Quarterly Report on Form 10-Q
Nine month period ended September 30, 2003
PART I - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
Review Report of Independent Accountants
TO THE BOARD OF DIRECTORS AND STOCKHOLDER OF CALIFORNIA PETROLEUM TRANSPORT
CORPORATION
We have reviewed the accompanying condensed balance sheet of California
Petroleum Transport Corporation as of September 30, 2003, and the related
condensed statements of operations and retained earnings for the three month and
nine month periods ended September 30, 2003 and 2002, and the condensed
statements of cash flows for the nine month periods ended September 30, 2003 and
2002. These financial statements are the responsibility of the Company's
management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data, and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with auditing standards generally accepted in the United States, which will be
performed for the full year with the objective of expressing an opinion
regarding the financial statements taken as a whole. Accordingly, we do not
express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying condensed financial statements referred to above for
them to be in conformity with accounting principles generally accepted in the
United States.
We have previously audited, in accordance with auditing standards generally
accepted in the United States, the balance sheet of California Petroleum
Transport Corporation as at December 31, 2002, and the related statements of
operations and retained earnings, and cash flows for the year then ended, not
presented herein, and in our report dated March 28, 2003, we expressed an
unqualified opinion on those financial statements. In our opinion, the
information set forth in the accompanying condensed balance sheet as of December
31, 2002, is fairly stated, in all material respects, in relation to balance
sheet from which it has been derived.
Ernst & Young
Chartered Accountants
Douglas, Isle of Man
November 11, 2003
California Petroleum Transport Corporation
Condensed Statements of Operations and Retained Earnings
(Unaudited)
(in thousands of US$)
3 month 9 month
period ended period ended
September 30 September 30
2003 2002 2003 2002
Revenue
Interest income 2,976 3,322 9,154 10,212
Fees reimbursed by
related parties 11 4 67 23
------- ------- ------- -------
Net operating revenues 2,987 3,326 9,221 10,235
------- ------- ------- -------
Expenses
General and administrative
expenses (11) (4) (67) (23)
Amortisation of debt
issue costs (64) (64) (192) (192)
Interest expense (2,912) (3,258) (8,962) 10,020)
------- ------- ------- -------
(2,987) (3,326) (9,221) 10,235)
------- ------- ------- -------
Net income - - - -
Retained earnings, beginning of period - - - -
------- ------- ------- -------
Retained earnings, end of period - - - -
======= ======= ======= =======
See notes to the condensed financial statements (unaudited).
California Petroleum Transport Corporation
Condensed Balance Sheets (Unaudited)
(in thousands of US$)
September December
30, 2003 31, 2002
(See note 1)
ASSETS
Current assets:
Cash and cash equivalents 1 1
Current portion of serial loans receivable 12,950 18,160
Current portion of term loans receivable 3,355 -
Interest receivable 5,887 3,322
Other current assets 17 15
-------- ---------
Total current assets 22,210 21,498
Serial loans receivable, less current portion 10,058 22,882
Term loans receivable, less current portion 113,529 116,818
Deferred charges and other long-term assets 1,228 1,420
-------- ---------
Total assets 147,025 162,618
======== =========
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities
Accrued interest 5,887 3,322
Current portion of serial mortgage notes 12,950 18,160
Current portion of term mortgage notes 3,355 -
Other current liabilities 17 15
-------- ---------
Total current liabilities 22,209 21,497
Serial mortgage notes, less current portion 10,270 23,220
Term mortgage notes, less current portion 114,545 117,900
-------- ---------
Total liabilities 147,024 162,617
Stockholder's equity
Common stock, $1 par value; 1,000
shares authorised,
issued and outstanding 1 1
-------- ---------
Total liabilities and stockholder's equity 147,025 162,618
======== =========
See notes to the condensed financial statements (unaudited).
California Petroleum Transport Corporation
Condensed Statements of Cash Flows
(Unaudited)
(in thousands of US$)
9 month period
ended September 30,
2003 2002
Cash flows from operating activities
Net income - -
Adjustments to reconcile net income to
net cash provided by
operating activities:
Amortisation of deferred debt issue costs 192 192
Amortisation of issue discount on loan receivable (192) (192)
Changes in operating assets and liabilities:
Increase in interest receivable (2,565) (2,943)
Increase in other current assets (2) (2)
Increase in accrued interest 2,565 2,943
Increase in other current liabilities 2 2
-------- --------
Net cash provided by operating activities - -
-------- --------
Investing Activities
Collections on serial loans receivable 18,160 18,160
-------- --------
Net cash provided by investing activities 18,160 18,160
-------- --------
Financing Activities
Repayments of serial mortgage notes (18,160) (18,160)
-------- --------
Net cash used in financing activities (18,160) (18,160)
-------- --------
Net increase 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 6,589 7,269
======== ========
See notes to the condensed financial statements (unaudited).
California Petroleum Transport Corporation
Quarterly Report on Form 10-Q
Nine month period ended September 30, 2003
Notes to the condensed financial statements (unaudited)
1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
California Petroleum Transport Corporation (the "Company" or "California
Petroleum"), which is incorporated in Delaware, is a special purpose
corporation that has been 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"), the
Serial Mortgage Notes and the Term Mortgage Notes (together, "the Notes")
as full recourse obligations of the Company and loaning the proceeds of the
sale of the Notes to the Owners to facilitate the funding of the
acquisition of four vessels (the "Vessels") by the Owners from Chevron
Transport Corporation (the "Initial Charterer"). All the shares of
California Petroleum are held by The California Trust, a Massachusetts
charitable lead trust formed by JH Holdings, a Massachusetts corporation,
for the benefit of certain charitable institutions in Massachusetts.
The Owners have chartered the Vessels to the Initial Charterer under
bareboat charters that are expected to provide sufficient payments to cover
the Owners' obligations under the loans from the Company. The Initial
Charterer can terminate a charter at specified dates prior to the
expiration of the charter, provided it notify the Owner at least 12 months
prior to such termination and make a Termination Payment. The Owners' only
source of funds with respect to the loans from the Company is payments from
the Initial Charterer, including Termination Payments. The Owners do not
have any other source of capital for payment of the loans.
The Company's only source of funds with respect to the Notes are payments
of principal and interest on the loans to the Owners. The Company does not
have any other source of capital for payment of the Notes.
The financial statements have been prepared in accordance with accounting
principles generally accepted in the United States of America ("GAAP").
These statements reflect the net proceeds from the sale of the Term
Mortgage Notes together with the net proceeds from sale of the Serial
Mortgage Notes having been applied by way of long-term loans to the Owners
to fund the acquisition of the Vessels from the Initial Charterer.
Basis of Presentation
The accompanying unaudited condensed financial statements have been
prepared in accordance with accounting principles generally accepted in the
United States for interim financial information and with the instructions
to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by GAAP for complete
financial statements. In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. The principal accounting policies used in
the preparation of these financial statements are set out below.
The balance sheet at December 31, 2002 has been derived from the audited
financial statements at that date but does not include all of the
information and footnotes required by GAAP for complete financial
statements.
These financial statements should be read in conjunction with the audited
financial statements and accompanying notes included in the Company's
Annual Report on Form 10-K for the year ended December 31, 2002.
2. PRINCIPAL ACCOUNTING POLICIES
(a) Revenue and expense recognition
Interest receivable on the Serial Loans and on the Term Loans is accrued on
a daily basis. Interest payable on the Serial Mortgage Notes and on the
Term Mortgage 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 Notes to which they relate.
(c) Reporting currency
The reporting and functional currency is United States dollars.
(d) Cash and cash equivalents
For the purpose of the statement of cash flows, all demand and time
deposits and highly liquid, low risk investments with original maturities
of three months or less are considered equivalent to cash.
(e) Use of estimates
The preparation of financial statements in accordance with 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.
3. SERIAL LOANS
The principal balances of the Serial Loans earn interest at rates ranging
from 7.57% to 7.62% and mature over a remaining three-year period beginning
April 1, 2004. The loans are reported net of the related discounts, which
are amortised over the term of the loans.
4. TERM LOANS
The principal balances of the Term Loans earn interest at a rate of 8.52%
per annum and are to be repaid over a twelve-year period beginning April 1,
2004. The loans are reported net of the related discounts, which are
amortised over the term of the loans.
5. SERIAL MORTGAGE NOTES
The Serial Mortgage Notes bear interest at rates ranging from 7.57% to
7.62% through maturity. The Notes mature over a remaining three-year period
beginning April 1, 2004. Interest is payable semi-annually.
6. TERM MORTGAGE NOTES
The Term Mortgages Notes bear interest at a rate of 8.52% per annum.
Principal is repayable on the Term Mortgage Notes in accordance with a
twelve-year sinking fund schedule commencing April 1, 2004. Interest is
payable semi-annually.
7 NEW ACCOUNTING STANDARDS
In November 2002, the FASB issued FASB Interpretation No. 45, Guarantor's
Accounting and Disclosure Requirements for Guarantees, Including Indirect
Guarantees of Indebtedness of Others ("FIN 45"). FIN 45 requires that upon
issuance of a guarantee, the guarantor must recognize a liability for the
fair value of the obligation it assumes under that guarantee. The
disclosure provisions of FIN 45 are effective for financial statements of
annual periods that end after December 15, 2002. Adoption of FIN 45 did not
have a significant impact on the financial statements.
In January 2003, the FASB issued FASB Interpretation No. 46, Consolidation
of Variable Interest Entities - An Interpretation of ARB No. 51 ("FIN 46").
FIN 46 requires certain variable interest entities to be consolidated by
the primary beneficiary of the entity if the equity investors in the entity
do not have the characteristics of a controlling financial interest or do
not have sufficient equity at risk for the entity to finance its activities
without additional subordinated financial support from other parties. The
consolidation provisions of this interpretation are not effective for the
Company until 2004, except for the disclosure provisions, which are
effective immediately. The Company has begun it evaluation of the
provisions of FIN 46. Application of the consolidation provisions of this
interpretation is not expected to have a material effect on the Company's
results of operations.
California Petroleum Transport Corporation
Quarterly Report on Form 10-Q
Nine month period ended September 30, 2003
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Organization and history
California Petroleum Transport Corporation (the "Company") was incorporated
under the laws of the state of Delaware on May 18, 1994. The Company is a
special purpose corporation that has been organized solely for the purpose
of issuing, as agent on behalf of the Owners, Serial Mortgage Notes and
Term Mortgage Notes (the "Notes") as full recourse obligations of the
Company and loaning the proceeds of the sale of the Notes to the Owners
(the "Loans"). The Notes were issued on April 5, 1995.
Liquidity and Capital Resources
The Company is a passive entity, and its activities are limited to
collecting cash from the Owners and making repayments on the Notes. The
Company has no source of liquidity and no capital resources other than the
cash receipts attributable to the Loans.
Critical Accounting Policies
The Company's principal accounting policies are described in Note 2 to the
financial statements included in Item 1 of this Form 10-Q. The most
critical accounting policies include:
o Revenue and expense recognition
o Accounting for deferred charges
ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
(a) Quantitative information about market risk
Quantitative information about market risk instruments at September 30,
2003 is as follows:
i) Serial Loans
The outstanding principal balances of the Serial Loans earn interest at
rates ranging from 7.57% to 7.62% and mature over a remaining three-year
period beginning April 1, 2004. The loans are reported net of the related
discounts, which are amortised over the term of the loans.
The outstanding Serial Loans have the following characteristics:
Maturity date Interest rate Principal amount
($ 000's)
April 1, 2004 7.57% 12,950
April 1, 2005 7.60% 7,740
April 1, 2006 7.62% 2,530
Total 23,220
ii) Term Loans
The principal balances of the Term Loans earn interest at a rate of 8.52%
per annum and are to be repaid over a twelve-year period beginning April 1,
2004. The loans are reported net of the related discounts, which are
amortized over the term of the loans.
The table below provides the final principal payments on the Term Loans if
none of the Initial Charters is terminated and if all of the Initial
Charters are terminated on the earliest termination dates.
No initial All initial
charters charters
Scheduled payment date terminated terminated
($000's) ($000's)
April 1, 2004 3,355 1,700
April 1, 2005 6,542 3,480
April 1, 2006 9,526 5,320
April 1, 2007 10,942 6,340
April 1, 2008 10,942 6,880
April 1, 2009 10,942 7,470
April 1, 2010 10,942 8,110
April 1, 2011 10,942 8,800
April 1, 2012 10,942 9,540
April 1, 2013 10,942 10,360
April 1, 2014 10,942 11,240
April 1, 2015 10,941 38,660
-------- --------
Total 117,900 117,900
-------- --------
iii) Serial Mortgage Notes
The Serial Mortgage Notes bear interest at rates ranging from 7.57% to
7.62% through maturity. The Notes mature over a remaining three-year period
beginning April 1, 2004. Interest is payable semi-annually. The outstanding
Serial Mortgage Notes have the following characteristics:
Maturity date Interest rate Principal amount
($ 000's)
April 1, 2004 7.57% 12,950
April 1, 2005 7.60% 7,740
April 1, 2006 7.62% 2,530
Total 23,220
iv) Term Mortgage Notes
The Term Mortgage Notes bear interest at a rate of 8.52% per annum.
Principal is repayable on the Term Mortgage Notes in accordance with a
twelve-year sinking fund schedule commencing April 1, 2004. Interest is
payable semi-annually.
The table below provides the scheduled sinking fund redemption amounts and
final principal payments on the Term Mortgage Notes if none of the Initial
Charters is terminated and if all of the Initial Charters are terminated on
the earliest termination dates.
Scheduled payment date No initial All initial
charters charters
terminated terminated
($000's) ($000's)
April 1, 2004 3,355 1,700
April 1, 2005 6,542 3,480
April 1, 2006 9,526 5,320
April 1, 2007 10,942 6,340
April 1, 2008 10,942 6,880
April 1, 2009 10,942 7,470
April 1, 2010 10,942 8,110
April 1, 2011 10,942 8,800
April 1, 2012 10,942 9,540
April 1, 2013 10,942 10,360
April 1, 2014 10,942 11,240
April 1, 2015 10,941 38,660
--------- ---------
Total 117,900 117,900
--------- ---------
(b) Qualitative information about market risk
The Company was organized solely for the purpose of issuing, as agent on
behalf of the Owners, the Term Mortgage Notes and Serial Mortgage Notes as
obligations of the Company and loaning the proceeds of the sale of the
Notes to the Owners to facilitate the funding of the acquisition of the
Vessels from Chevron Transport Corporation.
ITEM 4 - CONTROLS AND PROCEDURES
(a) Evaluation of disclosure controls and procedures.
Within the 90 days prior to the date of this report, the Company carried
out an evaluation, under the supervision and with the participation of the
Company's manager Frontline Ltd, including the Company's President and
Treasurer, of the effectiveness of the design and operation of the
Company's disclosure controls and procedures pursuant to Exchange Act Rule
13a-14. Based upon that evaluation, the President and Treasurer concluded
that the Company's disclosure controls and procedures are effective in
alerting them timely to material information relating to the Company
required to be included in the Company's periodic Securities and Exchange
Commission ("SEC") filings.
(b) Changes in internal controls
There have been no significant changes in our internal controls or in other
factors that could have significantly affected those controls subsequent to
the date of our most recent evaluation of internal controls, including any
corrective actions with regard to significant deficiencies and material
weaknesses.
PART II - OTHER INFORMATION
ITEM 1 - LEGAL PROCEEDINGS
The Company is not party to any legal proceedings the results of which
could, in the opinion of management, have a material adverse effect upon
the Company.
ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits
Exhibit 31.1 Certification of Principal Executive Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 31.2 Certification of Principal Financial Officer pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002
Exhibit 32.1 Certification Pursuant to 18 USC Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
b. Reports on Form 8-K
The Company has not filed any current reports on Form 8-K with the SEC
during the current quarter of the fiscal period covered by this report.
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
\Nancy D Smith\
November 11, 2003
Nancy D Smith
Exhibit 31.1
CERTIFICATION OF THE PRINCIPAL EXECUTIVE OFFICER
I, Nancy D Smith, certify that:
1. I have reviewed this quarterly report on 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 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)) 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 is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
b) 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
c) 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 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 function):
a) All significant deficiencies and material weaknesses in the design
or operation of internal controls 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 controls over financial reporting.
Date: November 11, 2003
\Nancy D Smith\
- -----------------------
Nancy D. Smith
President
Exhibit 31.2
CERTIFICATION OF THE PRINCIPAL FINANCIAL OFFICER
I, R Douglas Donaldson, certify that:
1. I have reviewed this quarterly report on 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 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)) 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 is made known to us by others within those entities,
particularly during the period in which this report is being prepared;
b) 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
c) 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 registrants internal
control over financial reporting; and
5. The registrant's other certifying officer 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 function):
a) All significant deficiencies and material weaknesses in the design
or operation of internal controls 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: November 11, 2003
\R Douglas Donaldson\
- -----------------------
R. Douglas Donaldson
Treasurer
Exhibit 32.1
CERTIFICATIONS UNDER SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the
undersigned certifies that this periodic report fully complies with the
requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934
and that information contained in this periodic report fairly represents, in all
material respects, the financial condition and results of operations of
California Petroleum Transport Corporation.
This certification is made solely for purpose of 18 U.S.C. Section 1350, and not
for any other purpose.
\Nancy D Smith\
----------------------
Nancy D. Smith
President
\R Douglas Donaldson\
-----------------------
R. Douglas Donaldson
Treasurer
Date: November 11, 2003
02089.0006 #442453