86 evenrude 40 hp

[Andy123]

I have oil leaking from the prop /exhaust port. Seems like a bad seal, what parts will I need to repair this?
I have drained and refilled the lower gear oil...it had no water in the old oil, was still fairly clear and seems fine.

The oil leaking from the prop/exhaust on the other hand is very black but seems much thicker than the gas/oil mixture used for fuel. I can't understand why oil would be leaking from what is basically the exhaust pipe of the engine. could it be gear oil that is leaking into the prop shaft? or is two cycle oil not being burned and p***ing into the exhaust possibly? I mix the fuel at 50:1 and it runs pretty well although it can be difficult to start and the plugs seem a bit wet. Any help would be appreciated as we dont have an evinrude mechanic here on Maui

[boats.net]

If the lower unit oil looks good with no water, then the oil you are seeing is likely unburned oil. Check your carburetor settings, replace your spark plugs and complete a compression test. This is not an uncommen problem, that could also be the water cleaning the oil from the exhaust system. The spark plugs should look light brown in color, if they are not, then your carburetor needs proper tuning.