| Date      of event requiring this shell company report |   |
|--------------------------------------------------------|--------|

| Commission      file number |        033-79220-03 |
|-----------------------------|--------------------------|

|  CALPETRO TANKERS (BAHAMAS III)  LIMITED |
|-----------------------------------------------|

|   |
|--------|

| Bahamas                                                                                   |   |
|-------------------------------------------------------------------------------------------|--------|
| (State      or other jurisdiction of incorporation or    organization)                    |   |
|                                                                                      |
|  Mareva House, 4 George      Street, PO Box N-3937, Nassau,      Bahamas   |
| (Address of      principal executive offices)                                             |
|                                                                                      |

| Title      of each class | Name      of each exchange on which registered |
|--------------------------|------------------------------------------------|
|  None               |  Notapplicable                            |

| Indicate      by check mark if the registrant is a well-known seasoned issuer, as      defined in Rule 405 of the Securities Act.                                                                                                                                                                                                                                                |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  [__]      Yes           [X]         No                                                                                                                                                                                              |
| If      this report is an annual or transition report, indicate by check mark if      the registrant is not required to file reports pursuant to Section 13 or      15(d) of the Securities Exchange Act of      1934                                                                                                                                                            |
|         [__]      Yes           [X]         No                                                                                                                                                                                  |
| 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 is a large accelerated filer, an      accelerated filer, or a non-accelerated filer. See definition of      “accelerated filer and large accelerated filer” in Rule 12b-2 of the      Exchange Act. (Check one):                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                             |

| Large      accelerated filer | [__] | Accelerated      filer | [__] | Non-accelerated      filer | [X] |
|------------------------------|------|------------------------|------|----------------------------|-----|

| Indicate      by check mark which financial statement item the registrant has elected to      follow: |   |   |   |   |
|-------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|

|                                                                                                                                                         |               |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|--------|--------|--------|
| If      this is an annual report, indicate by check mark whether the registrant is      a shell company (as defined in Rule 12b-2 of the Exchange      Act). |          |   |   |   |

----

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| 1.1*   | Certificate      of Incorporation and Memorandum of Association of CalPetro Tankers      (Bahamas III) Limited, incorporated by reference to Exhibit 3.3 in the      Registration Statement of CalPetro Tankers (Bahamas I) Limited, CalPetro      Tankers (Bahamas II) Limited, CalPetro Tankers (Bahamas III) Limited, and      CalPetro Tankers (IOM) Limited filed November 9, 1994 on Forms S-3, S-1      and F-1, Registration No. 33-79220.                                                                                                                                                                                                                                                                                                                                                                             |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 1.2*   | Articles      of Association of CalPetro Tankers (Bahamas III) Limited, incorporated by      reference to Exhibit 3.4 in the Registration Statement of CalPetro Tankers      (Bahamas I) Limited, CalPetro Tankers (Bahamas II) Limited, CalPetro      Tankers (Bahamas III) Limited, and CalPetro Tankers (IOM) Limited filed      November 9, 1994 on Forms S-3, S-1 and F-1, Registration No.      33-79220.                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 2.1*   | Form      of Term Indenture between California Petroleum Transport Corporation and      Chemical Trust Company of California, as Indenture Trustee, incorporated      by reference to Exhibit 4.1 in the Registration Statement of CalPetro      Tankers (Bahamas I) Limited, CalPetro Tankers (Bahamas II) Limited,      CalPetro Tankers (Bahamas III) Limited, and CalPetro Tankers (IOM) Limited      filed November 9, 1994 on Forms S-3, S-1 and F-1, Registration      No.33-79220.                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 2.2*   | Form      of Term Mortgage Notes, incorporated by reference to Exhibit 4.2 in the      Registration Statement of CalPetro Tankers (Bahamas I) Limited, CalPetro      Tankers (Bahamas II) Limited, CalPetro Tankers (Bahamas III) Limited, and      CalPetro Tankers (IOM) Limited filed November 9, 1994 on Forms S-3, S-1      and F-1, Registration No. 33-79220.                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 2.3*   | Form      of Bahamian Statutory Ship Mortgage and Deed of Covenants by [CalPetro      Tankers (Bahamas I) Limited], [CalPetro Tankers (Bahamas II) Limited] to      California Petroleum Transport Corporation (including the form of      assignment of such Mortgage to Chemical Trust Company of California, as      Collateral Trustee, by California Petroleum Transport Corporation),      incorporated by reference to Exhibit 4.4 in the Registration Statement of      CalPetro Tankers (Bahamas I) Limited, CalPetro Tankers (Bahamas II)      Limited, CalPetro Tankers (Bahamas III) Limited, and CalPetro Tankers      (IOM) Limited filed November 9, 1994 on Forms S-3, S-1 and F-1,      Registration No.33-79220.                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| 2.4*   | Form      of Assignment of Initial Charter Guarantee by [CalPetro Tankers (Bahamas      I) Limited] [CalPetro Tankers (Bahamas II) Limited] [CalPetro Tankers      (IOM) Limited] [CalPetro Tankers (Bahamas III) Limited] to California      Petroleum Transport Corporation (including the form of Collateral      Assignment of such Initial Charter Guarantee to Chemical Trust Company of      California, as Collateral Trustee, by California Petroleum Transport      Corporation), incorporated by reference to Exhibit 4.7 in the Registration      Statement of CalPetro Tankers (Bahamas I) Limited, CalPetro Tankers      (Bahamas II) Limited, CalPetro Tankers (Bahamas III) Limited, and CalPetro      Tankers (IOM) Limited filed November 9, 1994 on Forms S-3, S-1 and F-1,      Registration No. 33-79220. |

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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.5*   | Form      of Assignment of Earnings and Insurances from [CalPetro      Tankers  (Bahamas I) Limited] [CalPetro Tankers (Bahamas II)      Limited] [CalPetro Tankers (IOM) Limited] [CalPetro Tankers (Bahamas III)      Limited] to California Petroleum Transport Corporation, incorporated by      reference to Exhibit 4.8 in the Registration Statement of CalPetro Tankers      (Bahamas I) Limited, CalPetro Tankers (Bahamas II) Limited, CalPetro      Tankers (Bahamas III) Limited, and CalPetro Tankers (IOM) Limited filed      November 9, 1994 on Forms S-3, S-1 and F-1, Registration No.      33-79220.                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 2.6*   |  Form      of Assignment of Initial Charter from [CalPetro Tankers (Bahamas I)      Limited] [CalPetro Tankers (Bahamas II) Limited] [CalPetro Tankers (IOM)      Limited[ [CalPetro Tankers (Bahamas III) Limited] to California Petroleum      Transport Corporation (including the form of Collateral Assignment of such      Initial Charter to Chemical Trust Company of California, as Collateral      Trustee, by California Petroleum Transport Corporation), incorporated by      reference to Exhibit 4.9 in the Registration Statement of CalPetro      Tankers  (Bahamas I) Limited, CalPetro Tankers (Bahamas II)      Limited, CalPetro Tankers (Bahamas III) Limited, and CalPetro Tankers      (IOM) Limited filed November 9, 1994 on Forms S-3, S-1 and F-1,      Registration No. 33-79220. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 2.7*   | Form      of Management Agreement between P.D. Gram & Co., A.S., and [CalPetro      Tankers (Bahamas I) Limited] [CalPetro Tankers (Bahamas II) Limited]      [CalPetro Tankers (IOM) Limited] [CalPetro Tankers (Bahamas III) Limited],      incorporated by reference to Exhibit 4.10 in the Registration Statement of      CalPetro Tankers (Bahamas I) Limited, CalPetro Tankers (Bahamas II)      Limited, CalPetro Tankers (Bahamas III) Limited, and CalPetro Tankers      (IOM) Limited filed November 9, 1994 on Forms S-3, S-1 and F-1,      Registration No. 33-79220.                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 2.8*   |  Form      of Assignment of Management Agreement from [CalPetro Tankers (Bahamas I)      Limited] [CalPetro Tankers (Bahamas II) Limited] [CalPetro Tankers (IOM)      Limited] [CalPetro Tankers (Bahamas III) Limited], incorporated by      reference to Exhibit 4.11 in the Registration Statement of CalPetro      Tankers  (Bahamas I) Limited, CalPetro Tankers (Bahamas II)      Limited, CalPetro Tankers (Bahamas III) Limited, and CalPetro Tankers      (IOM) Limited filed November 9, 1994 on Forms S-3, S-1 and F-1,      Registration No. 33-79220.                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 2.9*   | Form      of Serial Loan Agreement between California Petroleum Transport      Corporation and [CalPetro Tankers (Bahamas I) Limited] [CalPetro Tankers      (Bahamas II) Limited] [CalPetro Tankers (IOM) Limited] [CalPetro Tankers      (Bahamas III) Limited], incorporated by reference to Exhibit 4.12 in the      Registration Statement of CalPetro Tankers (Bahamas I) Limited, CalPetro      Tankers (Bahamas II) Limited, CalPetro Tankers (Bahamas III) Limited, and      CalPetro Tankers (IOM) Limited filed November 9, 1994 on Forms S-3, S-1      and F-1, Registration No.33-79220.                                                                                                                                                                                                                         |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.10*  | Form      of Term Loan Agreement between California Petroleum Transport Corporation      and [CalPetro Tankers (Bahamas I) Limited] [CalPetro Tankers (Bahamas II)      Limited] [CalPetro Tankers (IOM) Limited] [CalPetro Tankers (Bahamas III)      Limited], incorporated by reference to Exhibit 4.13 in the Registration      Statement of CalPetro Tankers (Bahamas I) Limited, CalPetro Tankers      (Bahamas II) Limited, CalPetro Tankers (Bahamas III) Limited, and CalPetro      Tankers (IOM) Limited filed November 9, 1994 on Forms S-3, S-1 and F-1,      Registration No. 33-79220.                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 2.11*  | Form      of Collateral Agreement between California Petroleum Transport Corporation      [CalPetro Tankers (Bahamas I) Limited] [CalPetro Tankers (Bahamas II)      Limited] [CalPetro Tankers (IOM) Limited] [CalPetro Tankers (Bahamas III)      Limited], the Indenture Trustee under the Serial Indenture, the Indenture      Trustee under the Term Indenture and Chemical Trust Company of California,      as Collateral Trustee, incorporated by reference to Exhibit 4.14 in the      Registration Statement of CalPetro Tankers (Bahamas I) Limited, CalPetro      Tankers (Bahamas II) Limited, CalPetro Tankers (Bahamas III) Limited, and      CalPetro Tankers (IOM) Limited filed November 9, 1994 on Forms S-3, S-1      and F-1, Registration No. 33-79220. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 2.12*  | Form      of Issue of One Debenture from [CalPetro Tankers (Bahamas I) Limited]      [CalPetro Tankers (Bahamas II) Limited] [CalPetro Tankers (IOM) Limited]      [CalPetro Tankers (Bahamas III) Limited] to California Petroleum Transport      Corporation, incorporated by reference to Exhibit 4.15 in the Registration      Statement of CalPetro Tankers (Bahamas I) Limited, CalPetro Tankers      (Bahamas II) Limited, CalPetro Tankers (Bahamas III) Limited, and CalPetro      Tankers (IOM) Limited filed November 9, 1994 on Forms S-3, S-1 and F-1,      Registration No. 33-79220.                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.1*   | Form      of Initial Charter Guarantee by Chevron Corporation, incorporated by      reference to Exhibit 10.1 in the Registration Statement of CalPetro      Tankers (Bahamas I) Limited, CalPetro Tankers (Bahamas II) Limited,      CalPetro Tankers (Bahamas III) Limited, and CalPetro Tankers (IOM) Limited      filed November 9, 1994 on Forms S-3, S-1 and F-1, Registration No.      33-79220.                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| 4.2*   | Form      of Bareboat Initial Charter between [CalPetro Tankers (Bahamas I) Limited]      [CalPetro Tankers (Bahamas II) Limited] [CalPetro Tankers (IOM) Limited]      [CalPetro Tankers (Bahamas III) Limited] and Chevron Transport      Corporation, incorporated by reference to Exhibit 10.2 in the Registration      Statement of CalPetro Tankers (Bahamas I) Limited, CalPetro Tankers      (Bahamas II) Limited, CalPetro Tankers (Bahamas III) Limited, and CalPetro      Tankers (IOM) Limited filed November 9, 1994 on Forms S-3, S-1 and F-1,      Registration No. 33-79220.                                                                                                                                                                                  |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.3*   | Form      of Vessel Purchase Agreement between [CalPetro Tankers (Bahamas I)      Limited] [CalPetro Tankers (Bahamas II) Limited] [CalPetro Tankers (IOM)      Limited] [CalPetro Tankers (Bahamas III) Limited] and Chevron Transport      Corporation (including the form of Assignment of such Vessel Purchase      Agreement to California Petroleum Transport), incorporated by reference to      Exhibit 10.3 in the Registration Statement of CalPetro Tankers (Bahamas I)      Limited, CalPetro Tankers (Bahamas II) Limited, CalPetro Tankers (Bahamas      III) Limited, and CalPetro Tankers (IOM) Limited filed November 9, 1994 on      Forms S-3, S-1 and F-1, Registration No. 33-79220. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.4    | Bareboat      Charter between Calpetro Tankers (Bahamas III) Limited and Front Voyager      Inc. dated March 31, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 4.5    | Assignment      of Charter between Calpetro Tankers (Bahamas III) Limited and Front      Voyager Inc. dated March 31, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 10.1*  | Powers      of Attorney for directors and certain officers of CalPetro Tankers      (Bahamas II) Limited, incorporated by reference to Exhibit 24.1 in the      Registration Statement of CalPetro Tankers (Bahamas I) Limited, CalPetro      Tankers (Bahamas II) Limited, CalPetro Tankers (Bahamas III) Limited, and      CalPetro Tankers (IOM) Limited filed November 9, 1994 on Forms S-3, S-1      and F-1, Registration No. 33-79220.                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 12.1   | Certification      of the Principal Executive Officer pursuant to Rule 13a-14(a) and Rule      15d-14(a) of the Securities Exchange Act, as amended.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 12.2   | Certification      of the Principal Financial Officer pursuant to Rule 13a-14(a) and Rule      15d-14(a) of the Securities Exchange Act, as amended.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 13.1   | Certification      of the Principal Executive Officer pursuant to 18 USC Section 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| 13.2   | Certification      of the Principal Financial Officer pursuant to 18 USC Section 1350, as      adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

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|                                 | CALPETRO      TANKERS (BAHAMAS III) LIMITED |                              |
|--------------------------------------|---------------------------------------------|-----------------------------------|
|                            |                                        |                              |   |
|                                 | By:                                         | /s/ Kate      Blankenship    |   |
|                                 |                                        | Kate      Blankenship             |   |
|                                 |                                        | Director      and Secretary  |   |
|                                 |                                        |                              |   |
| Dated:        July 8, 2008 |                                        |                              |   |
|                                 |                                        |                              |   |