Fluid between compressor outlet and O2 Sensor housing

[eSpyder407]

I'm guessing this is oil... Smokes a decent bit when the exhaust heats up. There's not a lot of smoke out of the exhaust though so if it is an oil leak it does not appear to be major. This oil only seems to appear when I take it out for short neighborhood street drives... Any ideas for why the oil is appearing in this area?

History: Bought the car with a blown motor, it sat in a garage for 2 years before I bought it. The engine was recently rebuilt by a reputable machine shop with lots of DSM builds on the resume, so I'm not ready to point to that yet. The turbo did sit for 2 years but it looked to be in great shape, no shaft play. I've only done a few short road tests around the neighborhood under 3k RPMs as I've just recently got the car put together and running... Still fixing some other things to get is road ready, but I'm stumped on this one.

The turbo is a FPGreen
FP exhaust manifold
Tial wastegate 38mm
3" Full Exhaust
Boost @ ? - still tuning

 

[iceguru1114]

If you trust the engine build, and the thrust bearing on the turbo seems ok (no shaft play), I'd check the breather system. If you have an OEM system, a common problem is the check valve on the valve cover getting stuck open (http://www.dsmtuners.com/threads/the-4g63t-pcv-system.366890/#post-152865548) which can cause the manifold to blow oil into the turbo inlet under boost. You can remove the valve and check it with an air chuck real quick to make sure its' still working.

If that's not it check turbo (thrust bearings), valvetrain (stem seals), engine (rings via leakdown test), in that order