I checked the oil filter housing and oil temp sensor behind it and it looks dry. If it’s the block to oil pan, this is the upper oil pan gasket that would need to be replaced right?
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Freshly rebuilt engine - tracking down oil leaks
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I have found that very often the oil leaks on the M42 are from the round outlet from the oil filter housing. It is relatively high up and mostly obscured from view, and can run oil all over the engine. The o-rings get dried out and shrink, making for a pretty hefty mess. IF you take the filter housing off, just be sure not to drop ANY crud into the upper round bore hols since that is the main clean oil feed to the engine, and anything that goes in there could end up in a main bearing.
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