The stock turbo uses oil for lubrication and cooling.  The oil enters from the top of the center housing and exits underneath.  The oil supply line enters from the top is pressurized.  This metal oil supply line runs from the top of the front iron from a banjo bolt to a compression connection before it terminates at the turbo center housing with a flange.  A gasket is recommended with silicone RTV for a guarantee seal.  If this oil supply flange leaks, this tends to coat the turbo center housing.  With the elevated temperatures of the turbo, this oil tends to burn and cause a stink.

The other possibility of an oil leak from the turbo is from the bottom drain line.  The turbo drain line exits from underneath the turbo center housing into a flex section then into the front cover.  The oil drain line sections are flanged.  The turbo center housing to oil drain line flex section is flanged and requires a gasket.  We've tried just RTV on this flange, but it does not seal well; we have been able to just silicone RTV the oil supply line on top with some success.  Unfortunately, this job requires the turbo to be removed to access both 12mm flange head bolts underneath that secure the flange; unlike the top oil supply line, this top pipe can be accessed with the turbo in place.

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